I know, the option premium includes the intrinsic value plus the time value. When the target will be hit, options will not have much time value left (~1 month?), so there won't be too much of a premium above it. If it's 10c in May, and the stock isn't really expected to rise in June, there will be minimal time value. Options would be worth at least 2.5c if it's 10c, and possibly up to 2.8c (if that) to take into account the remaining time value.
pressure on oppies, page-6
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