Denvermint, they are talking about company options which are different to equity options which you maybe referring to. Company options are tradeable securities allowing you to right to buy the company's ordinary shares before the exercise date at an exercise price. They are bought and sold via disallowed no different to ordinary shares except they have a different ticker code. In this case it's PYMO. They can be very lucrative when there is a substantial difference between the price of the two. ie 10c price ( ordinary shares ) to 1c option. If the ordinary share price goes up 1c to 11c you've made 10% but if the same price flow comes into the option's share price and goes to 2c you've made 100%. Hope this makes sense.
Equity options are completely different and a lot more complex. They are also only traded on ASX100 companies of which I can assure that PYM is not one. The main thing they have in common is that both of them have a time value associated with their price and the closer you get to the expiry date the less that this time value becomes. So you'd want to have a very strong conviction that PYM's share price is going to go up before the exercise date otherwise you'll just end up owning a worthless piece of script and your money has gone down the drain. Been there down that. Very risky and speculative.
PYM Price at posting:
0.5¢ Sentiment: None Disclosure: Not Held
