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Message: Re: Question to Peter: Stock Options

I am a long time investor that normally does not ask questions. With Pyrogenesis on the NASDAQ have you considered making options traiding available.  With my other holdings I prefer to sell covered calls against my position to generate income without actually selling any of my shares.

Thanks in advance and congratulations on building such a great company.

It's not up to Peter to decide if NASDAQ lists options. The exchange decides if they get enabled. Options are already enable on the canadian side (MX exchange) and the first volume option trade was last friday. Someone wrote a call for 6.50 strike expiring this friday. And someone else bought that call from them.

https://www.investopedia.com/ask/answers/04/072104.asp

PYR meets all 5 criteria depending on what qualifies for #5. Its a bit ambiguous.

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I really hope options aren't allowed! If options are allowed they are done in very short time period! I find companies who offer options often have them bite the company or investors in the butt at a later date. Also we don't need more share dilution. You want shares buy them on the open market if you can't make that work then your not the savvy investor you make yourself sound to be. 

Moon Bucks

 

Everything in this statement is wrong.

Options are not always done in a very short period. You can already buy options for PYR on the canadian side. The expiries go out as far as mar 2022. Typically option chains always have monthly expiries and for larger cap companies they have weekly expiries. I had options on a cruise line recently that were good for 1.5 years.

There are 2 kinds of options that can be available for retail investors to take part in. Options on the CBOE (Chicago Board Options Exchange) which are all bought and sold by investors and have nothing at all to do with the underlying company. Options here are not issued by the company they are contracts bought and sold by investors between each other.

The second kind of options are stock options issued by the company to insiders or people who take part in private placements for example in equity raises. In this case the company strikes a deal with employees/insiders/accredited investors for shares at a certain price and a bonus option or warrant at a certain strike.

Warrants are options that are issued by the company with a set strike and expiry so in a sense they are like a type of option. I think you are thinking about warrants because only warrants can cause dilution. Stock options on the CBOE do not cause dilution.

Options are a perfectly good way to manage risk on a position or hedge against losses. There are dozens of reasons you might want to buy or not buy any mix of shares options or warrants on a company.

But don't make the statement that if options open up that it somehow means the company is diluting or that this is bad for the company. It's a non event for the company if anything. Its a market between shareholders and has virtually nothing to do with the company.

 

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