thanks mate, your reply is much appreciated. your thinking makes...

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homer88

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29/07/18

11:18

Post #: 34611884
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Originally posted by Megagene79 ↑

@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.

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thanks mate, your reply is much appreciated. your thinking makes sense - you are less concerned about the fair value of the option at this precise moment but more about the medium term share price movement. paying eg 15% over fair value for an option is inconsequential when you're hoping for multi bag returns on heads! I like this super-leveraged approach for trading shells... if you're lucky enough to build a position in the options or better yet get some free options in a raise. will be watching mrqob closely this week. cheers & gltah

MRQ Price at posting: 1.0¢ Sentiment: Buy Disclosure: Not Held
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Last 0.3¢		Change 0.000(0.00%)		Mkt cap ! $9.490M

Open	High	Low	Value	Volume
0.3¢	0.3¢	0.3¢	$525	175K

Buyers (Bids)

No.	Vol.	Price($)
3	2846826	0.3¢

Sellers (Offers)

Price($)	Vol.	No.
0.4¢	25870526	19

View Market Depth

No.	Vol.	Price($)
15	22176536	0.003
26	27200476	0.002
26	67533287	0.001
0	0	0.000
0	0	0.000

Price($)	Vol.	No.
0.004	25862154	35
0.005	12060000	12
0.006	8411252	11
0.007	5484000	7
0.008	5188095	6

Last trade - 10.04am 04/12/2024 (20 minute delay)

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