Company options work differently to ASX futures options and are...

Company options work differently to ASX futures options and are quite simple. Basically, each option you hold gives you the right to buy one share at the exercise price before the expiry date. So if you hold 1 million KAIOG, you have the right to buy 1 million shares of KAI for 2.5c each at any time between now and 31st December 2021. They can also be traded just like ordinary shares. There is no obligation to buy any shares just because you hold the options. Kind of like a layby that you can pick up by paying the 2.5c or discard if they expire when the KAI share price is lower than 2.5 cents. When KAI's share price is above 2.5c they are regarded as being in the money. You can also split your parcel of options and exercise some of what you hold and sell or keep the rest - the choice is yours.