options, page-4

Hi WinePlease.
Options of 1c and an offer to purchase shares in June 2010 at 4c infers a trading price in June 2010 of more than 5c. If trading price is less than 5c, but more than 4c, you loose proportionately.If trading price is less than 4c in June 2010, you can write off your options, as you could then buy the shares for less thna your special price of 4c.

However, options are highly geared , and if the trading price of the shares went back to 8c, your options would be worth 4c, which is a four fold increase.

For this reason speculators love options, to trade millions at a time, without ever planning to purchase the shares at the end of the contract period.

Hopefully VLA can break through the 8c barrier, early next year, or earlier. Good luck. Cheers.