G'day Jezalenco. Options are in the main very tricky, but, at this time, the STKOAs are really just like an ordinary shares trading stock. They are in the money, with months to go and heaps of news. So, I'm trading them on the same basis that I'm trading my shares.
Normally, when an option is out of the money, it's a really different ball game. That 3.6 cents and the way the shares are going takes away the vast amount of risk that usually applies to options.
But, they DO have an end date!!! THAT IS vitally important, as, on the 17th of May next year, they expire and are removed from the ASX. So, if you are still in them you lose the lot.
Therefore, dates are very important to have in the back of your mind.
Meanwhile, I'll be watching the comparison between the STKs and the STKOAs IF there is an opportunity to get the STKs cheaper than having a 3.6cent gap, i.e. the options are closer in price to the STKs than 3.6cents. I'd sell the options and buy the STK's. That saves me from having to pay the full 3.6 cents to exercise them. In fact, I'd be exercising as a last resort, I don't see any need to exercise unless I'm still holding with a month to go. I certainly wouldn't be waiting until the wire to do anything.
Otherwise, if the gap stays at 3.6 cents or more, I'll be trading them like I trade the STKs. It all depends on the prices, the gap and the date. You need to keep an eye on the STKs but, most importantly, the STKOA s.
These options certainly put life into the market when things get boring, they provide extra, very interesting, options and, IMO, are, by far, one of the most enjoyable options that are on the ASX market. But, be mindful. And just start with an amount that won't keep you awake at nights.
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