Each year my company offers a share save scheme for 3 or 5 years, with an option price around 20% lower than current market price.
I have a 2018 5 year scheme, which I contribute £25 per month into, the option price was £3.84. Meaning over 5 years, I will have saved £1,500.
I can then buy £1,500 worth of shares at £3.84, which is c390 shares - or if the share price in 5 years drops below £3.84 I can take my money back, risk free.
2019 Share shave scheme has given us an option price of £2.86, meaning if I signed up for another £25 per month contribution, I would again have saved £1,500 over 5 years, but at the end I would be able to buy £1,500 shares at £2.86, c524 shares, a difference of 134 shares.
At current share price of £4, the 2018 share save scheme would mean my shares are worth £1,560 (60 profit)
At current share price of £4, the 2019 share save scheme would mean my shares are worth £2,096 (£596 profit).
My question there is, with the 2019 option price being far more attractive, is it a considerationt to pull my money out of the 2018 scheme £300, and place that, plus the ongoing £25 contribution, into the 2019 scheme. This would mean I would put £50 per month + £300 from the first year of 2018.
As the two schemes together, if the price were to stay at £4, in 6 years when both plans mature, I would have invested £3,000, and made £656 profit.
Where as, if I invested £50 per month over the the next 5 years scheme, I would have invested £3,000, and would be able to buy c1048 shares on maturity.
Which, if we take £4 per share as an example, would be worth £4,195, a profit of £1,195, almost double what the 2018 and 2019 schemes would be together after a similar period.
Obviously, I can't rely on any share price being anything, with brexit, the tensions in Iran and the US, so nothing is a given. Guess I need to decide if I wait another year for one to mature, and potentially double my money. If the price rises over £4, I'd be going above doubling my money.
What are your thoughts?