re: neo / opl thousand foot gas column jh-1 It is all semantics I guess because the market follows it own rules but the one thing missing in the post by DS as we have discussed before is anytime premium after 10c.
This will only be probable if the stock hits these prices with only a couple of months to expiry and the deeper in the money the better the time premium generally.
The 2.5c time premium is not going to vapourise over night as long as the market believes that the options have a chance of being exercised.
I think the options are around 1c over priced based on time but the market is obviously factoring in POSSIBILITY. I can't do that so accept that the market has more insight than me at this stage.
If they are correct then the leverage in the options at say 10c fpo will be around 200% vs 100% fpo.
15c fpo will be 200% vs options 400%.
The options are by far the greatest leverage even at these prices IF the price goes up. However if the price fails to reach the numbers that are being discussed over the next few months then there will be a massive acceleration of time decay factored in and our options will look very sick indeed.
Saltys strategy of trading the more volatile fpo whilst hanging onto the options makes a lot of sense with NEO and good food for thought.
cheers
debono
NEO
nuenco nl
