how do pekos work, page-2

Hi Marneth, I will try to keep it brief. Something I struggle with. There I go again. Lol! Ok. Firstly PEK options or PEKOA as they are listed are the same as any other companies options. They are a tradable commodity that is a certificate essentialy that entitles you to convert if you choose this bit of paper into a share in PEK. Think of it like a gift voucher in some ways. Identical in the way some gift vouchers expire, options expire, they are worth something one day but the day after expiry worth nada. They generally go down in value as expiry gets closer and closer and ideally options have a year or two left to run. If I did not think PEK had a lot of upside in the near future I would not be a fan of PEKOAs. I am a fan of PEKOA and hold far more of these than the heads. If you are to convert PEKOAs into shares in the company it will cost you 5 cents each, this is the stike price. Some options have a 20 cent strike price, some 1 cent, every option and company is different. Some companies have no options on offer, some have 2 or 3 different sorts. Some have options that only directors own. Its complex, yet simple once you get used to it. Options are seen as higher risk and higher yeald or loss. Some investors never buy options, some only buy options. Many dont buy options because they dont understand them and many understand but choose not to buy and only buy heads. Sooner or later a company somewhere will give you some free options so one day you will probobly own some like it or not.Lol! Where I am going is it is very individual, like which companies you choose to invest in.
I was the one today who said I though anything under 10 cents for ops is a bargain. This is because I believe the Peak res is well undervalued at the moment. Having said that I was being general and the cheaper you can buy something the better. Tomorrow looks like being a down market day, you may pick some up in the 6s somewhere. Be sneaky, well its not so sneaky, but if someone is offering 6.5 and someone will sell for 8 go to 6.6 and you are first in line. Sometimes on quite days or down days you can pick up some bargains. Options can be better as a leverage play . If the ops are 10 cents and the heads are 15 cents then if the heads go to thirty or double your money the ops should be 25 cents which is double and a half your dough. Someone else could explain this better, but leverage is the main reason people get into options. p.s all this just my opinion and as such certainly flawed.
Good luck, hope it was some help Tretch