Pick up "OPtions, Futures and other Derivatives" by Hull 2nd hand. Read it back to front. Then read it again and understand you will still be a novice.
Lets start you with some basics. ASMO options, listed as warrants because of the nature of them, are actually call options with a strike price of $1.74 for 31 Oct 2027. If ASM is not trading higher than $1.74 by then, they will expire worthless. Zip, zero, zilch.
They "seem" cheap at $0.055 (implied volatility is one of the primary measures for options pricing and at $0.055 these arguably aint cheap) because you will literally have to have three years of more then 40% compounded annual growth in the stock price from here for them to be worth anything. If you get a very good 30% annual growth in ASM's share price compunded, they will still be worth zip, zero, silch on expiry.
Options are extermely risky and complicated financial instruments to trade. My good deed for the week. Just a little 19% move up in ASM today on nothing, perhaps a worthy of a comment or two????
ASM Price at posting:
63.0¢ Sentiment: Buy Disclosure: Held
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