Sharesave

zimuebsj

Hi,

I am currently participating in a Sharesave scheme through work that has 2 years left to run. At the moment the shareprice is about the same level as the option price that i will have.

I was wondering whether i would now be able to purchase these options on the open market and cancel my sharesave? Would this not be available to me or be prohibitively expensive?

Thanks,

zimuebsj

chris_m

You could purchase the equivalent shares on the open market, but not the option shares though. The cost would be the share price times the quantity plus any dealing fees.

zimuebsj

I meant purchase the call options on the open market. There are no option shares. So instead of keeping my money in the scheme, i could take it out but then still have the option to purchase the shares for the same price as if i had stayed in the Sharesave.

bowlhead99

Sure, see if you can find someone to write you a call option at your preferred strike price and buy it from them. Simples.

However, if the option is already 'in the money' i.e. you want the strike price to be round about where the share price is now - then if the option was free, you will 'win' if the share price goes up and not lose if the share price goes down. So, the options will not be free. Expect them to be expensive to buy.