Placement, page-34

But they won't both go up one pip. I own options in another stock that has consistently traded at a discount to the fpo. There is no guarantee whatsoever that oppies go up a pip when the fpo does.

I actually like trading options but I am just giving you the reality based on a realistic price target. The other factor that can kill oppies is dilution. As the company needs to raise more money, depending on the dilution, this can stifle potential share price growth which kills you if you own oppies. Also if the company decides to issue shares on a rights issue basis, as an option holder you don't get to participate. Added to, as I said before the usually more difficult task of buying and selling options due to much lower liquidity, there are many things that need to be considered before taking on the extra risk of buying options over fpo. That's why you need to consider what realistic potential EXTRA reward there is in taking on the EXTRA risk. I usually will not take it on if the reward isn't close to at least double.