options offer 'leverage' or magnified gains if the share price...

options offer 'leverage' or magnified gains if the share price rises

for example:

* if you buy BKT for 10 cents, if the BKT share price reaches 30 cents, you make 200% profit

* if you buy BKTOD for 2.5 cents, if the BKT share price reaches 30 cents, you make 800% profit

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but if the share price falls below the options exercise price of 7.5 cents at Nov 18, you lose everything

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BKTOD is superb buying at 2.5 cents, even if you only buy a small amount, such as 40,000

40,000 x 2.5 cents = $1,000 investment

if BKT reaches 30 cents within 18 months, your 40,000 BKTOD bought for $1,000 will be worth $9,000

profit = $8,000 on $1,000 investment

if you lose your $1,000, so what? just chicken feed

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