OH MY GOD, page-105

Here is what I think about options:

It's based on high risk and reward and be aware you can loose all of your money trading them so you need a lot of back ground knowledge of the company. Companies do issue options with a certain price and expiry date to raise more capital in future like BMLOB. It would be matured in December 2016 and has a exercise price of 1.5cents. Simply, in December 2016, Bml will ask me to pay 1.5 c per option to convert them into ordinary shares. I will have a choice to either pay 1.5c or let them expire which means all money gone. So let's say, I will buy them tomorrow at 0.006c in the market. On top of these 0.006c, I still have to pay 1.5c in 2016 or I can sell them in market before 16. Now let's persume, SP hits 30c a market cap of 150million, the price of options would be: 30c - 1.5 = 28.5 plus time value.... Share price today is 1.5 c which means at 30c its a return of 20bags. However options are trading at 0.006c which means at 28.5c its a return of 37 bags... Something like that... These are just rough calculation, I am not saying it will happen. So do your research please as you can loose all of your money on options easily.

Please se correct me If I am wrong

cheers