Hi @ans25
You may have already got your answers but I only just came across this post. Here is some more for what it's worth.
Q1) - Unlisted options are typically handed out to consultants/staff of a company?
Unlisted options may be issued:
* As performance incentives to executives
* Under an employee incentive scheme
* Issued to underwriters or consultants for services provided
* Issued to shareholders as a bonus or through a CR - See SGQ, currently offering short dated options as a bonus to shareholders
* To vendors of tenements as payment or part-payment
Q2) - Can they be traded with normal listed options? How are they traded?
Can they be converted to heads and hence be traded as normal heads? Or are they involved in 'XT' transfer between parties
* No, they are unlisted so cannot be traded on the ASX. They could perhaps be transferred between holders or accounts off-market.
* Yes, they could be exercised at any time prior to expiry and then traded but one would expect that they would have to be in-the-money to warrant this.
* The company could apply to the ASX to have the options listed. ARV did this about 18 months back. They had a lot of unlisted options that were granted for free in a CR and once a fire got lit under their sp post RE they applied to the ASX to have them listed. They were then freely tradeable on the ASX.
Q3) - What happens if unlisted options expire (after date)?
* They expire worthless.
