VALOB, page-13

Guys lets all learn? when I started, I didn't understand options too. Here is how I see it.

Option is something you buy so you can buy the actual shares at a later date (expiration date) at a specified price (strike price). However you can trade this like any other stock on the market or convert the option to 'actual' shares in the company if you wish to do so.

Say the strike price is 1.5c and the share price is 2.0c.

Then technically the options should be trading at share price(2.0c) - strike price(1.5c) = 0.5c (again this depends on the expiration of the options itself, in VALOB's case its 31 December 2021). The more the time to expire, the more the "premium" or the time value.

For instance, if the options were to expire at the end of 2023 instead then you can safely add 0.3-0.4 on top of the calculated option price of 0.5 which will give us 0.8-0.9c. This premium isn't a exact math is there is heaps of methods and calculators out there.

Why trade options when you can buy the stock itself? Leverage.
Say VAL's stock price went from 2c to 3c (in my opinion this is just a matter of time) then the options should be trading at 3c-1.5c = 1.5c.
VAL: 2c to 3c --> 50% gain whereas,
VALOB: 0.5 to 1.5c --> 200% gain.

So at the end of the day, its high risk, high reward $$$.

These are just company options, there are other options which works differently like for instance the US options (100 stock contract) is different to the European options. Make sure to do all your research, see how much you'll gain/ lose before you make a trade.

Hope that helped!!