What is up with the options?, page-6

Options are really pretty straight forward.
They are the right to purchase shares at a predetermined price, by a certain date. In the case of 88E, the exercise price is 2c and the expiry date is December 2018 (I think the 15th but I'm not certain).
So if you own an option, you can either trade it on the market, or exercise the option by paying the 2c and coverting them to a share (heads).
From a capital gains tax perspective, the only down side is that the 12 month timeframe for the 50% resets when you convert them from options into shares.
The advantage is that you get more exposure for your money. The options look attractive at the moment because the gap is greater than the 2c exercise price (.066 to .045). For a give amount, say $10,000 you can buy 151,515 shares, or 222,222 options. If the price shoots up, as we hope, then you will make a lot more with the options.
If the share price goes to say 0.10 your shares would be worth $15,151, whereas our options would be worth .08c x 222,222 = 17,777. This is 2,626 additional profit, This is called gearing. You gain more because you have more shares, but if the price falls, you would loose more on the options because of the gearing.