How do u convert options or whatever it is you do with them. Bought some a while ago. Not much is happening so….
Holden Berry: Wait for them to expire, will convert into ordinary shares
Josephine Silva: You have to pay the conversion fee prior to the expiration date for that to happen, otherwise they expire worthless.
Holden Berry: My bad got it mixed up
Gracelynn Bush: Matthew Caporn how is that fee worked out?
Josephine Silva: Depends on the stock, every option will have a different conversion price.
Hannah Hampton: How do i go about this?
Catalina Farmer: Ring up CommSec (if u with them) – they will tell you who holds the options and the strike price and then ring that company and find out the way to make payment to them Which options do u hold ?
Hannah Hampton: Bloody zyboa
Josephine Silva: Hannah Hampton: Call the Company Secretary and request the Option Conversion form.
Hannah Hampton: Ok ill do that.And what exactly happens generally in this case?Zyboa is doing pretty bad options or ordinary
Josephine Silva: Hannah Hampton: Im not familiar with that stock but once you get the form completed, you pay the conversion price. Then once the company issues the 3B to market (normally a few days later) the new shares will hit your account and youll be able to hold or sell them. Sometimes its easier just to sell the options on market but youll need to do the calcs on that yourself.
Hannah Hampton: Im reading the google explanation now.Zyboa is pretty low at this stage so im considering buying more beforebi convert them….See more
Josephine Silva: Whats the conversion price for ZYBOA?
Hannah Hampton: How or where will i find that?Its my 1st options Ive dealt with
Josephine Silva: Hannah Hampton: Zyber.com.au
Josephine Silva: they are not worth converting at that price
Josephine Silva: Did you get them for free in the CR or did you buy them on market?
Hannah Hampton: Bought unfortunately
Josephine Silva: You still have 18 months before expiry so no need to panic just yet.
Hannah Hampton: I think im in at .011.Bought them when zyb was go up strong each day….See more
Josephine Silva: That means you have to pay 1.2 cents for each option to be converted to a share. So you paid 1.1 to buy, then 1.2 to convert them to ordinary shares, that equals 2.3c each but youd only be able to sell for 1 cent each at the current market price. Obviously that would be silly.
Tanner Brown: Never let listed company options expire – thats just a waste of $$$
Hannah Hampton: Ill just hang on to them or maybe buy more to bring average down and sell off closer to my price.
Blake Dean: Never let options expire ??Thats a ludicrous call.
Tanner Brown: Why would you buy them if your only intention is to let them expire Matt? Worst case scenario, like shares, is selling at a loss.
Josephine Silva: Martin Fisher me?
Tanner Brown: Really not sure whats going on here tbh. ðŸ™„
Josephine Silva: Not sure where I said to buy them and let them expire??
Tanner Brown: Sometimes in a rights issue you might get a number of shares plus a few options attached – then I can see if theyre not in the money you can just let them expire – but theyre usually always worth something – so in that situation youd sell them before they expire for whatever the market will pay. Ludicrous idea indeed. ðŸ¤£
Blake Dean: If u buy an option at 1c for investment purposes with a strike price at 10c when the heads share price is 12c and as expiry date looms the heads fall Bak to 6c youde be cRazy to pay 10c to convert (11c in total)for a share worth 6c,when u could in eff…See more
Amira Gibbs: Pay them out if they are in the money and they will covert to ordinary shares. Assume the this is the type of option you are referring to?
Faith Bryan: Google Call Options
Tanner Brown: Hayden – put & call options are totally different to listed company options 😀
Tanner Brown: Read the pdf How listed company options work in Group Files Yaz. Facebook.com
Hannah Hampton: Ok
Hannah Hampton: Well…Can a person buy options, which are generally much cheaper, then convert them the same day to get that gain?Sounds like a stupid question but thats pretty much what the file says.
Blake Dean: Hannah Hampton:Yes you can convert and make a profit if the options purchase price and strike are less the heads.Its also also a way of making greater returns with higher risks as well for example options can triple in value form only a 50% movement in…See more
Tanner Brown: Its not worth converting options until theyre in the money Yaz – in other words when the difference between the price of the main share (the heads) is significantly higher than the cost at which you bought the option plus the exercise (strike) …See more