mmro v mmr, page-3

you hold options but dont know what they represent ??? boy i thought i was green.... mmr options are worth whatever the market says they are worth ...todays close around 13.5 . an option is tradeable like a share .they have a exercise price (ie you can turn them into a share for the exercise price before a certain date )..with mmro the price is 20c , date is 4th july 2013 from memory . meanwhile they trade normally . so if the sp goes to 20c the options are 'in the money' and if say the op price was 15c at that time they would trade cent for cent with the heads from thereon . at present the options are trading at around 13c and the sp 28. so there is 8c value in the over and above exercise price and five cents or so premium for not having to pay up for a fair while yet. the advantage is leverage . i hope that helps