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In over 25 years of investing, l have never seen company options...

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    In over 25 years of investing, l have never seen company options drive the share price higher. l have held shares many companies issuing options, some for free, and some as CRO have for a nominal token upgront fee.
    Company options are a great way to leverage your equity. Some sell their holding in the main share and buy the same amount of options ie sell 1 million shares @ 3c for $30k and buy 1 million options @1c for $10k. The perentage return on the option will be far greater to than the main share with a rising share price.
    If anything, the options may trade at a premium to the main share, but l dont see the options driving the share price. Positive announcements should drive the share price higher, with options trailing the heads by around 2c. As the options get closer to expiry, the options will trade closer to the 2.5c payable to convert to a main share.
    In saying that, Im happy to be proven wrong.

    Noggie
    Read disclaimer below
 
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