For me the beauty of options is the leverage. Using the example from Oz, if heads get to 30c then basically the value of the heads will double in value ( approx). However, if heads get to 30c then the oppies will get to 15c is triple. So you will make an extra bag on oppies if the SP gets to 30. The higher the SP the more leverage thenoppies provide. Now the risk is that the SP does not get above 15c ( or in the money). If that is the case then you will effectively be paying a premium in the long run. The other thing I lIke about options is that it is a buy now pay later deal. Yes at 4.9c a Shaw you effectively will be paying 19.9c a share once converted. However, if you don't have the money right now but are confident that you will around Christmas then it is effectively a way to secure you part of the company now without having to front up all the cash right now. So I guess it is up to each person to decide what they think the value of the company will be in 9 1/2 months time. I am betting with finance secured and construction under way that we will potentially be multiples of our current sp. This why I hold 3x as many options as I do heads and will be looking to convert them (either all or sell some to pay for the others) before the end of the year.
WKT Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
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