DYOR. Not advice. You need to take into account your own...

DYOR. Not advice.
You need to take into account your own tolerance for risk and make your own investment decisions. The information presented here is based on the Black-Scholes Model ( for a general description see https://en.wikipedia.org/wiki/Black–Scholes_model ).
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In a scenario where the company delivers on all their development goals in the next 12-18 months the options could prove to be very, very lucrative as suggested below. If the company fails in meeting key objectives or general market conditions remain very volatile, the options could prove to be a very risky investment.

Those warnings given, some fresh analysis on the options versus the heads, using Black Scholes. The follow key inputs have been used:

• Time to expiry: 597 days ( 1.64 years )
• Number of heads: 780.5M
• Number of options: 437.2M
• Strike price: $0.0325
• Volatility 40% and risk-free return 4.27%

From this analysis the current premium on the options is $0.007. They have been heavily accumulated since November 2017 and they are tightly held. There is very limited liquidity currently (which adds to the risk). There has not been much trading volume in the heads recently and this translates to much less trading volume in the options. Options have an expiry date and depending on whether they are "in the money", this can significantly impact the liquidity in the months before expiry. Options are also a risk if a takeover occurs, since they may not be factored into a takeover offer ( you may need to exercise the options early ).

The first chart presents how with each $0.002 cent increase in the heads, the rate at which the options can be expected re-rate compared to the heads. This is the proportional change in the price of the heads compared with the proportional change in the price of the options for each $0.002 movement in the heads.

As it is a mathematical model, it is just an approximation. Actual movements will depend on market sentiment and trading activity.



In the second chart, I look at a theoretical investment of $1000 invested in the heads at $0.024 versus $1000 invested in the options at $0.009. Based on the model, by the time the heads get to $0.12 the investment would be worth as follows:

• Heads @ $0.12 the $1,000 initial investment in heads is valued at $5,000, versus
• Options @ $0.094 the $1,000 initial investment in options is valued at $10,077.

i.e. 3.2 bags on the heads versus 7.31 bags on the options.

This demonstrates the significant leverage potential of options.