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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Message: Jan ’09 2.50 options vs. buying stock

Jan ’09 2.50 options vs. buying stock

posted on Jul 31, 2008 10:45AM

About a week ago there was a discussion about this…a quick analysis – on March 24th…kry high-$2.83 and the Jan ’09 2.50 calls high-$1.00, so right now if you invested $10,000 today and the stock went back to these levels the outcome would be: (this is taking out the time decay, the options don’t have a theta due to the level. But they really aren’t trading that way…when the stock went to $1.3, the options spiked to $.45 on Jun 24th.)

$10,000 would get you 500 options at $.2 – at $1 your options are worth $50,000

$10,000 would get you 12,820 shares at $.78 – at $2.83 your shares are worth $36,280

However with the options to do run the risk of expiration.

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