@homer88 when i purchase options in a listed company i am purely...

@homer88 when i purchase options in a listed company i am purely looking for leverage. I don’t use any black scholes method of such just self analysing the price of fully paids to options plus the time till expiry and the strike price. I am mostly looking for oppies with min 1 year till expiry but the longer the better plus a low strike price as i only usually buy stocks under 1c. So i am lookimg for pure leverage. Lets take AVL which is doing well currently. 11 months ago i bought a large position in AVLO at around .005. The fulls AVL were at 1.5c with AVLO at .005. Currently AVL is 5.9c and AVLO at 3.8c. With a strike price of 2c and with AVLO expiring December 2018 i wemt AVLO ove AVL being able to buy 3 times the amount of stock. Im sure you can work out how that has played out on the numbers AVL/AVLO is trading at now.

But oppie plays don’t always work out and i have also lost big on oppies expiring worthless. When you accumulate a big oppie position and it pays off the win can be many multiples more than if you had bought heads but there can be more risk plus less liquidity in the options. On my method it is why i have accumulated a large MRQOB position over heads with the ability to buy double the stock with them having a nice low strike price of 1c and expiry is way out to December 2020. The mineral sands acquisition could be a major company maker here so my preference is to have as much stock as i can for leverage which MRQOB offer. Risk vs reward.