Option value, page-3

Sorry, that was probably a bit cryptic for a non-holder like yourself.

Truth is that there is no way to reliable way to value this - or any - option without first understanding the company's fundamentals. Simply plotting the exercise price within the last year's trading range (as you've done) can be misleading. In this case, it certainly is misleading, because the 52-week high was extremely short-lived and largely artificial. It has only stayed above $1 for short periods, and has mostly languished sub-80 cents.

Further, given the company's highly-ambitious efforts to conquer all corners of the globe simultaneously with almost no capital, there is a LOT more downside risk to the SP than upside (IMHO). Accordingly, I'd recommend that your son think very long/hard before throwing any more money at this via options.

Also, if its not too late, try to wait until the release of the 4C report. Creso tend to wait and issue it at the very latest opportunity (i.e. COB tomorrow) when the market has closed. This will give an important gauge on progress to date.

Hope that helps