Bobsa what value did you use for volatility in the Black Scholes calculation?
Also Black Scholes cannot take into account sentiment, bid depth versus sell depth and so on.
I will have a look on my Bloomberg screen on Monday (I am Sydney minus 9 hours) and let you know what Bloomberg's Black Scholes algoritym comes up with.
I bought a lot of options at 5.1c when the heads were at 14.5c because I am very confident drilling results will be above market expectations and the SP will be north of 20c in quick order.
I am a big fan of leverage but I must admit I hold MNE as well.
I don't think I overpaid as within a few weeks I could have sold at around 8.5c+ giving me a 70% profit if I had chosen to take it - which I didn't.
EB
MNE Price at posting:
16.5¢ Sentiment: ST Buy Disclosure: Held