you have to judge with common sense the value/price of the...

you have to judge with common sense the value/price of the options

for example, AEBO exercise price is 5 cents & AEB is currently 3.5 cents. therefore, the AEBO options are "out of the money" because the AEB share price is less than the AEBO exercise price

you would only buy AEBO options if you believe, in the medium to long term, the AEB share price will exceed 6 cents (i.e., the exercise price plus the AEBO purchase price)

for example, if AEB reaches 7 cents, you would make 100% on AEB & AEBO bought today

but if AEB reaches 10.5 cents, you would make 200% on AEB and 450% on AEBO bought today

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if AEB fell to 2 cents, AEBO might fall to 0.1 cents, i.e. become near worthless