Save As You Earn Help

Hi guys, I know this isn’t the correct place but I didn’t know where else to go and it is kind of relevant to Stocks.

The company I work for (Tesco) offer a “Save As You Earn” (SAYE) Scheme. This is the first time it’s been offered to us as we are a separate company, but owned by Tesco.

They are offering a 20% discounted option price of £2.20, however Tesco shares are currently set at £285.

This means I could put £50 aside each month for 3 years. Save up £1800 with a £55 bonus. So £1855 in total. Meaning I can purchase 843 shares at the Option Price. I know this doesn’t change so it will still be £2.20 in 3 years time.

What is confusing me is that everywhere I look online for advice, all the numbers and maths make sense. Company A offer a discounted price at £2 a share. The company rises to £3 in that time, so you would make a profit. This all makes sense, but the numbers also make sense with a 20% discounted option rate.

I know for a fact, I will not be able to buy 843 shares of Tesco as £2.20, and then sell at the actual share price of £285. That would mean I pay in £1800, but can sell at just under £240k, providing Tesco share price is still £285.

I would understand if Tesco share price was £2.85 but this isn’t highlighted anywhere and it’s all confusing me a little. Even with these numbers, I would be earning around £500 extra and it just seems all too easy?

Any help explaining this would be great! Hopefully I’ve explained what I know well enough. Sorry again, I know it’s not directly linked to this sub, but I’m just looking for any help, advice or guidance on how this works.

Cheers!