What is a company option and how do I exercise them?
An option is a contract that gives you the right but not the obligation to buy or sell a security before the expiration date, at a predetermined price (exercise price).
Company options are call options issued to shareholders by the company. Option holders have the right but not the obligation to take up (exercise) the options and purchase additional shares in the company. Some company options may be listed on the ASX meaning investors can buy additional options or sell their existing options on the market. However, an option that is not listed on a public stock exchange cannot be traded.
Another feature of company options is that the terms and conditions of the options (i.e. exercise price and expiry date) are determined solely by the issuing company and disclosed in the prospectus documentation. Hence, company options are non-standardised contracts and investors, as with any investment, investors should always read the full prospectus document to ensure all terms are understood.
Exercising your options
When exercising your company options, you agree to purchase the underlying security at the predetermined exercise price, regardless of the market price of the underlying security at the time you exercise your option.
If you wish to exercise your options, you must submit a request up to 3 business days before the option expiry date.
If you purchased options on-market and wish to exercise them, the options must first settle in your account (ASX T+2 settlement rule). This means you must purchase the options at least 5 business days before the option expiry date to be eligible to exercise them in your Superhero account.
Your application will only proceed if you have sufficient funds in your Superhero Wallet at the time you submit an exercise request.
If you have any further queries or wish to exercise your options through Superhero, please contact us on chat or email us at hello@superhero.com.au.
Will I be paid any dividends via Superhero?
You will be paid cash dividends into your Superhero Wallet.
When a company declares a dividend, the total amount will be available in your Dashboard under Pending until it is paid. Once a dividend is paid, the amount will be deposited into your Superhero Wallet, usually within 1-2 business days after the payment is made. A transaction record and your dividend statement can be found under Activity.
Will I receive franking credits on shares I buy/hold via Superhero?
Yes, any applicable franking credits are passed on to you via Superhero. To find out if you are eligible to claim franking credits, it’s best to check with your accountant or visit www.ato.gov.au for more information.
What is the brokerage fee for ASX trading?
For ASX-listed share trading, Superhero charges $2 brokerage up to a trade size of $20,000. For trades above $20,000, the brokerage is 0.01% of the trade.
For more information on our fees, please see our Fee Schedule.
How is my order directed into the market?
Any orders you place are directed into the market by our Market Participant.
How does Superhero handle my order instructions?
We pass your instructions on to our Market Participant. They execute your instructions according to their Best Execution Policy, the market Operating Rules and the ASIC Market Integrity Rules.
