You have the right, but not the obligation to buy one share per option at a fixed price of 50 cents up to the termination date of somewhere in June 2022.
like all financial products, the option has a value, which is calculated via the Black Scholes option pricing model. Currently the fair value of the option is around 10~10.5 cents. There 3 main variables which impact on the price of the option
1. Theta/time. The longer the option, the more value it has
2. The strike price. What price you pay
3. Volatility in the price of the underlying security. How much does the price move around
Currently the price of DYL is trading nigh on the exercise price of 50 cents. Now consider this - you can spend 10 cents on an option and by 2022 the maximum you will lose on a DYL share is.... 10 cents, but if it goes up you keep everything except a certain fraction of the original 10 cents
this is heads i win, tails i don't lose much.
Caveat emptor - BUT, the price of DYL isn't going anywhere if you don't think the price of uranium will rise by 2022
You have the right, but not the obligation to buy one share per...
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Last
$1.41 |
Change
-0.010(0.71%) |
Mkt cap ! $1.361B | |||
| Open | High | Low | Value | Volume |
| $1.42 | $1.42 | $1.39 | $7.034M | 5.006M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 10181 | $1.41 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.41 | 75086 | 4 |
View Market Depth
| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| DYL (ASX) Chart |