atten frader

Frader thanks for your reply below, my question is ...once the the share price hits 2.5c say, and you decide to convert options, does this take some time (admin process etc)? and during this "process" time can the share price go down to 1.7 which means you've made nothing. How does the share price hold while you execute your options and then sell so you make a profit?

Hope that makes sense




I see the options as a delayed loan.

You will pay a price of .2 cents for the options with a strike price of 1.5cents. Essentially you will be paying 1.7 cents for these shares.

Buying the options at say .2 cents for example is basically saying by the expiry date, you believe the shares of the company will be at (or higher than) 1.7 cents.

The only way to hold in the value of the shares once executed at say 2.5, cents would be to sell the shares (not options) at 2.5 cents once you executed. Or you can sell the options prior to the expiration date.