Hi Piouch Welcome to investing.... You can buy aebo just the...

Hi Piouch

Welcome to investing.... You can buy aebo just the same as you buy a share you just put the aebo code in when buying. As far as the difference there are many and I will just explain call options as these aebo options are call options. Each aebo option you hold gives you the right to buy a share at a later date at a set price. With call options you may also exercise that right earlier if you wanted to. There are many reasons why you would want to but I wont go into all the detail. The price of the option will usually rise and fall in line with a share but with much more volatility. E.g. after the recent announcement aeb dropped around 25% but the options dropped 50% the reverse would be true if the share price corrected back to up 25 % you could expect a 50% gain in share price i.e higher risk but higher reward.....

If you believe that a share price can rise before the exercise date then generally you would buy options if they represent value. Also you can expose yourself to more shares through options eg 1 million shares in AEB would cost you $9,000 where as 1 million shares would cost you $37,000 so its a bit like investing in property where you could put a $1,000,000 outright on a house and buy one house or five $200,000 deposits on five separate million dollar houses and if house prices go up you have exposure to 5 million worth of property but if house prices drop by half you could potentially lose everything if you had to sell.

Good luck with your investments Piouch and welcome aboard. Just for the record I will continue to buy options at the .009 to .01 cent mark

GLTAH