The options WKTOA you must pay 15c to convert to a head share. Expire 31 Dec 2019
The options price you see is what people are prepared to buy and sell to have that option where essentially they are banking on the Share Price to be 15c plus what they wish to pay to be advantageous to them.
If you pay 5c for the option you in effect are saying the Share Price must be 15c + 5c = 20c to breakeven.
If it goes above 20c because you believe / hope for it to go higher - say 30c then you would profit 10c per share when you convert them.
If you hold heads, then you can sell your 30c heads and payout 2 options worth 15c each.
OR
Towards the expiry date other parties may be there to buy up the options for a straight swap value to save you the conversion or the value may be minus a cent or 2 or even a few cents.
For example if the SP is 30c at the week before the expiry date, the options will be priced at slightly less than 15c
OR
You sell the option off and that buyer will convert. You may not get 15c at that point in time but you could likely see 13c-14c. The potential 1c-2c difference would be the new option buyer's reward for doing the conversion.
The higher the SP the more leverage and $$$ you get.
A lower SP below 15c and the RISK is they may expire worthless. DYOR.
SP will depend on where WKT will be with the project and the other projects in Namibia, Northern Ireland and Scotland.
WKT Price at posting:
13.5¢ Sentiment: Buy Disclosure: Held
(20min delay)
