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sunnydayz

1,509 Posts.

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17/01/17

11:54

Post #: 21942941
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Originally posted by DanielOnline ↑

When you buy an option you reserve the right to buy a share at a certain date at a certain price. In this case the strike price is 7.5c which means the date the options expire you can buy a share at 7.5c equal to the amount of options you own even if they are trading at 8c, 12c, or $1. You can only do this on a specific date (expiry date) which is around June I think.
The risk is if the trading price is 6c on the expiry your options are worthless because why would you pay 7.5c for a share that is trading for 6c?
Im still a bit new at this, but thats how I understand them, did i miss anything?

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Well said, so ideally the SP would be well over the 7.5c conversion/strike price by expiry around June 2017. So 1 million OA bought today at .003 + 7.5c conversion cost per share your up for 78k to play ball around June yeah?

AGO Price at posting: 4.7¢ Sentiment: None Disclosure: Not Held
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