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Boiler_Master

02/18/24 11:49 AM

#50343 RE: lflhdy #50342

The risk is exactly the same. Buying at a 30% discounted SP, you need to resell without the share price dropping 30% before you do. Does not matter what the share price is, the math is exactly the same for risk and when dealing with millions, they do math. So risk remains the same, but what about reward? Well, buying 1M shares, yes shares not cash bc it's structured around the number of shares to be sold... 1M shares bought and resold at .15 with a 30% discount makes exactly half the profit of buying and reselling at .30 with a 30% discount. So the risk remains the same, but the reward is double. Therefore, in their position I would rather buy 1M at a share price of .30 than at .15 it's a difference of investing $105,000 looking for a 42.9% profit, or investing $210,000 looking for a 42.9% profit. Same risk, double the reward.