Options can be used as a leverage play or a longer term hold and convert if you like the company long term...
eg. You have $5000 to spend...
$5000/$0.625 = 8000 shares at 62.5c for the heads
$5000/ $0.33 = 15151 options at $0.33
You can do one of 3 things...
1) Use the options as leverage and buy and sell like you would a normal share, so you get more with the same amount of money
2) Hold onto them and convert them to shares at a later date... Say by later in the year BIG reaches $1, the options should be trading around $0.75...
Converting means you are buying shares at $0.25c... So you would need to pay the company 15151 x $0.25 = $3787.75 ... Then you will receive 15151 shares...
3) Let them expire worthless if the BIG is less than $0.25 by december 2017 when the options expire...
BIG Price at posting:
63.0¢ Sentiment: Buy Disclosure: Held
