Mirouku,
Options vs heads gives you an idea of what people expect the share to run to. For options to have parity with heads, run through this calculation:
TP = Target Price
OS = Option Strike Price = 15 cents
OP = Current Option Price = 20 cents
SP = Current Share Price = 24.5 cents
TP - OS = (OP / SP) x TP
TP = ((OP / SP) x TP) + OS
(1 - (OP / SP)) x TP = OS
TP = OS / (1 - (OP / SP))
TP = 15 / (1 - (20 / 24.5))
TP = 81.5 cents
Cheers!
- Forums
- ASX - By Stock
- CVI
- options v heads
options v heads, page-2
-
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)