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2.7¢ dxn limited

OH BOY.......bit of a worry. you miss calculated a little, you...

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johnrap

1,506 Posts.

87

08/07/20

20:28

Post #: 45733572
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Originally posted by marquass ↑

An option gives you the right but not the obligation to buy the underlying stock at the exercise price.
example:
If the exercise price is 2 cents and you bought the option at 1 cent and underlying stock price ends at expiry 5 cents, then the option should end at a price around 3 cents and you will also have the right to own the stock at your option purchase price of 1 cent. Your total profit would be 4c
Don't forget if the underlying is under 2 cents you loose everything.
Options usually have intrinsic value which has time decay. So at 2/3 years the time decay would be very marginal.
If your interested in options you need to understand the Greeks and your payoff to calculate your risk vs reward before you buy any options.
In the event with DXN I only own shares and no options. I haven't even looked at the options. I think there is enough value without the need to take on that extra risk.

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OH BOY.......bit of a worry.
you miss calculated a little, you need to add that you also have to pay the 2c a share exercise price.
so 1c purchase plus 2c option exercise price = 3c therefore only a profit of 2c (assuming 5c share price)

my tip ..... no one likes a smartarse so i guess i should stop

DXN Price at posting: 2.5¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 2.7¢		Change 0.000(0.00%)		Mkt cap ! $4.992M

Open	High	Low	Value	Volume
2.7¢	2.7¢	2.7¢	$3.743K	138.6K

Buyers (Bids)

No.	Vol.	Price($)
1	51013	2.6¢

Sellers (Offers)

Price($)	Vol.	No.
2.9¢	213691	3

View Market Depth

No.	Vol.	Price($)
1	51013	0.026
3	152777	0.024
1	10000	0.023
2	145454	0.022
1	23809	0.021

Price($)	Vol.	No.
0.029	213691	3
0.030	48407	3
0.031	66667	1
0.037	46667	1
0.038	26342	1

Last trade - 11.41am 19/04/2024 (20 minute delay)

DXN (ASX) Chart