Options BCNOB, page-5

. i just looked at the spread and atm you can get the 100000 for the 1.9c np as there is 300 000 available at that price. Just click buy state your price proceed with the order like any other share trade. Thats the actual purchase taken care of and next comes decision weather to convert to fully paid shared or not.At the moment it would cost you 100 000 x 2.5 c to convert them to fully paid shares so $2500. so you would have paid a total of $1900 for the options + the $2500 conversion fee = $4400.This values each share by dividing total cost $4400 divided by number of shares = 100000 thereby each share has cost you 4.4 c . Considering the actual price if you need to sell atm is 3.5 c you lose money. ok lets say in 12 months the share price is 10c. I have retired and Donny has been removed from office in a perfect world. You paid 1.9 for your oppies and they would still cost 2500 for the convert . So then you make money. The real issue is you must recalculate with what the actual options price is at that time and compare to the actual share price to see which provides the greater profit. Here is an example looking back in time so you can see more clearly. If i bought 100 000 oppies at .4c = $400 6 months ago and now I can sell at 1.7 c = $1700 making a total profit of $1300. If i was to convert the oppies atm it would be cost of oppies + conversion fee = $2900 @ 3.5c and i could sell the shares making a profit of $600 but if i was to just sell the oppies at the current price of 1.7c = $1700 and a profit of $1300 atm you would convert if you see what i mean. There are 2 provisos 1 All options must be converted or will expire on the due date and secondly options do not receive dividends . Hopefully this makes sense as i tend to dribble on randomly Im sure someone with better knowledge will set us right if i am wrong.