re: bgf to rally - amahonour Fair enough, best to stick to what...

re: bgf to rally - amahonour Fair enough, best to stick to what one understands. Good pick though, since they (bgf) got out of the IT game and back into gold they have not looked back.

Put simply, an option gives you the right to purchase the fpo shares on a future date at a set price(strike). In the case of bgfo, they expire end of september at a strike price of 15c. So you can see that if the share price is say 30c, the value in the option is the difference. There are other considerations in valuing them in terms of time to expiry.