NVA 2.70% 19.0¢ nova minerals limited

NVAO options, $0.0325 strike to 31/8/20, page-46

  1. 2,356 Posts.
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    i thought i understood options and was going too sell all my Current Holdings of NVA and Buy NVAO with them instead, As i dont plan too hold them for longer then a year, but i stopped my self Today because my Idea was wrong about how " Options " work, so i have just been trying to learn more Today and i still cant work this out.. im sorry guys i dont mean to post stupid comment in here, but i just can not figure out how this works and i feel like its the smarted thing too do with my shares ( swap from NVA to the NVAO )

    What i understand so far

    - They expire at a certain date ( aug 2020 and if you miss the date they become worthless
    - They are cheaper then the current share price
    - You can get alot more Value / Units from buying Options instead
    - no dividends, or voting when holding options


    What i dont understand

    - How does the price go up of the Options ? Is it a lot slower then the actual share price rising? or does it rise with it no matter what?
    - When you sell the Options how do you pay a strike price of 0.032 ? what does this mean
    - a " strike price " you guys are saying 0.032 , so does this mean it will always cost me $0.032 too sell? i cant understand this part


    Would appreciate any help
 
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