Buru Energy (BRU) Options?

[dave777]

I have a few hundred shares with BURU energy. Today the price was 0.300.
I also have some options that I need to exercise before 10th October. The value on the ASX for these options today was 0.001. The options will cost 0.94c each. I don't fully understand what these options are for and can't understand why I would pay 94c for something worth 30c. I'm sure this can't be what they're for but would appreciate any advice. dave777

 

[cutz]

I have a few hundred shares with BURU energy. Today the price was 0.300.
I also have some options that I need to exercise before 10th October. The value on the ASX for these options today was 0.001. The options will cost 0.94c each. I don't fully understand what these options are for and can't understand why I would pay 94c for something worth 30c. I'm sure this can't be what they're for but would appreciate any advice. dave777

How did you acquire these options ?

Iress does not give me strike/type/expiry type, only expiry day.

Without the contract specs it's impossible to comment.

 

[mardo]

Hi Dave777
Your options were issued shortly after Buru floated and yes their option price was 94 cents each option.They had hoped to find a lot more oil and gas by the time the options were due but todate not a lot to show for their drilling.
I dont hold at the moment .Cheers.

 

[dave777]

So I'm guessing I should just let them lapse.

 

[ASXStockSelector]

BRUO have an expiry date of 10/10/2010 and an exercise price of $0.94. Basically, the exercise price is the price that you will pay to convert your options into full paid shares (BRU). Currently BRU is trading at $0.29 so there is no sense in exercising the options (or paying $0.94 per share) when you can buy them cheaper on the market (if you wish to do so).

This leaves you with two other alternatives. You can let the options lapse or try to sell them on the market before they expire. If you can get something for them then great, but you will have to join a queue of other sellers at $0.001! If you dont have many options the brokerage costs involved in selling them may be higher then the consideration you actually receive.