Opportunity on Options, page-151

First 151 Last

Share
Profile

Follow
SRV

3,252 Posts.

37

12/09/17

07:00

Post #: 27144066
Share

Originally posted by Wombat2 ↑

This is not meant to be perceived as a ramping post but for those less experienced investors today there is a large price difference between options and the main share commonly called a "head" share.

The options are similar to shares but without voting rights and can be exercise or converted to normal shares by paying an extra amount which in the case of AVZO is an extra 3c.

As I write AVZO are trading at 9.2c assuming there is a 3c gap to the "head" you would assume the head to be trading at 12.2c. In fact the heads are trading at 14.5c which is a gap of 2.3c. It suggests that the options are currently undervalued by 2.3c to what you would normally expect. Given enough time that gap should shrink.

Before you plunge in it might be worth doing some research on the highs and lows of options. I am merely trying to point out a potential opportunity for those that have never bought options on AVZ.

This is NOT intended to be advice to buy. The daily turnover on options is often less than on the heads. Today it is over 34m options traded so quite a few people have taken advantage of what I would term miss pricing of options.

Disclosure I had 1.5m options already and topped up by 200,000 options today.
Cheers W2

Expand

3.5c spread 'twixt heads & oppies right now...

Last edited by SRV: 12/09/17

AVZ Price at posting: 14.5¢ Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

SNG

Siren Gold boosts antimony resource by 66% to 14.5Kt at Auld Creek, NZ

PTR

Petratherm adds $1.6 to the piggybank ahead of SA titanium drilling program

ALR

Altair Minerals hits high-grade copper and gold at Wee MacGregor, QLD

WMG

Western Mines identifies 2 high-grade zones at Mulga Tank in WA

WR1

Winsome scoping study proposes low-cost operation for Adina lithium project