Who’s buying and selling, page-412

you are correct in your reasoning at 10 cents premium atm for options and at a exercise price of 15 cents, you would need the S.P to exceed 25 cents before making a profit, the options are illiquid hence why you see such distortions/mispricings. In reality if the option price was at 5 cents, the profit would be identical post 15 cents.

Just a FYI this isnt a replacement for finance option education but here is a summary below:

Call options are good if there is a chance that the company goes to 0 vs the equivalent of taking out a loan and buying shares as your outlay would have been lower for the same exposure. The advantage of shares over options that you have highlighted is that options have an expiry date and once they expire they are worthless, at least with shares they retain value until they wind up which could be several more years post the exercise date of an option (i.e. live to fight another day)



Also, if you can buy the options at the right price at parity or undervalued then options are a good alternative. But keep in mind this isn't advice, just highlighting differences of options and shares. As you can see in the table as price goes higher, at the options current price, you are losing on average $5k in comparison to the loan method but you are also risking less capital at the beginning to do so.

CGT discount, i believe the date and cost basis reset to the premium + exercise price + the day you exercise, i could be wrong but speak with your tax accountant for my clarity.

all in all i recommend looking at the ASX website for more options education. hope this helps