tryn,
I used to trade a lot in options (in Holland) and know something about it.
If options are introduced (which is very likely if they are listed on Nasdaq or Nyse), the exercise price will of course depend on the price at the time the options are introduced.
What is also important is the volatility of the share during that period.
The more fluctuation in the price (both up and down), the higher the price of the option.
Multi-year options also take this into account. If volatility decreases, the price of the option will decrease in the meantime. When increasing, the same is reversed. This is determined by the options traders. If volatility increases, the option price will increase in the meantime.
You can always sell your options at any time (before the expiration date).
The share price does not then have to be above the expiration price.
Example:
NWBO is listed on the Nasdaq with a PPP of $10 and is very volatile.
The potential is recognized and estimated to be enormous. The cash position is also of great importance. For example, the option trader will ask $1.50 for a 3-month option with strike price $12.50. 1 option then costs $150 and gives you the right to purchase 100 shares for a price of $12.50 (before the expiration date of course. You actually pay $12.50 + $1.50 = $14 per share. The price
is on or before expiration, for example at $25, then you have $11 profit per share.
You can then simply sell the option with a strike price of $10 to the option trader for $15. Next one more post.
Bullish
