RBS Shares

kchristo

I have been offered a share option for RBS shares at 35p (over a period of 3 years). Is this a good deal, or are the risks too great - thinking about nationalisation etc. Don't know enough about this.

purch

Who is offering the Option ?

What does the Option cost you ?

Is this a good deal

Without knowing the cost of the Option that can't be answered !!

I,_Brian

kchristo wrote: »

I have been offered a share option for RBS shares at 35p (over a period of 3 years). Is this a good deal, or are the risks too great - thinking about nationalisation etc. Don't know enough about this.

Why not just buy at 16.6p a share as they are now?

kchristo

The Option is through Direct Line - which offered the share option at 35p. I was thinking of between £30-£40.

purch

How much does the option cost you ?

kchristo

The option would cost me £1080 over the three years.

purch

The option would cost me £1080 over the three years

How much stock is this call for ??

It's 19p out of the money !!!!

gozomark

I,_Brian wrote: »

Why not just buy at 16.6p a share as they are now?

because an option is the right, but not the obligation to buy - buy at 16.6p and you could lose the lot. Buy an option, and you can only lose the option price, which in this case could be say 5p - less upside, but also much less downside. What we don't know is the price of the option....

gozomark

is it a fixed 3 years, or can you exercise the option early/sell them to someone else ?

xxtokerxx

Yeah at 16Pence at the moment, Interesting to learn more about the option buying though....

I prefer greater risks my self.

turbobob

Is this a 3 year sharesave scheme through your employer? If so this is a bit different from buying an option.