The one certain thing about OEX is that if the news is good. far bigger gains will be made from OEXO. Lets say OEX moves to 30 cents on good news (not unreasonable one would think) With nil premium OEXO would be worth 15 cents. If an investor had bought 100K OEX today cost would be A$18,500 so on the rise suggested the 100K would be worth A$30,000. If our investor had spent the same amount to buy OEXO his investment would now be worth A$95,689 or A$65689 more. That is the beauty gearing if one gets it right. On the information already out OEXO looks like one of the best speculation buys I have seen around for some time.
OEX Price at posting:
18.5¢ Sentiment: Hold Disclosure: Held