'why buy the oppies when the share price is at that price.'Given...

'why buy the oppies when the share price is at that price.'

Given that the expiry of the options are closer and closer, so why would you buy the oppies. Well for leverage of course. Personally I firmly believe the stock will recover on more news, and there should be plenty for us in the next few months.

On this basis at current prices you can buy fpo shares for .14c. You can buy oppies for 5c. If fpo goes up to 20c, oppies are worth 10c. 42% increase versus 100%. At 25c, oppies are worth 15c. 78% increase versus 200%.

So in effect, IF the fpo reaches 25c, your $10K investment is worth $17,800 if you buy the fpo, or $30K if you buy the opiton. You've almost doubled your money.

The other reason you might want to buy oppies over fpo, is that you only need to buy a fraction of oppies to have the same right for purchase of shares. So instead of buying $10K of fpo which gives you 71438 shares, you only need to buy $3571 worth of oppies which also gives you the option for 71438 shares. You have only outlaid $3571 and can use the rest of the money for other purposes until June when the options need to be exercised.

There are many benefits to options if you understand how to advantage from them.