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.
DXN Price at posting:
2.5¢ Sentiment: Hold Disclosure: Held
