Hi Razman, RE: PENOC "Is their price lagging the heads a little?"
I've had similar thoughts about this option over the years (assume you mean relative to the full security), and believe it to be historically par for course. The dilution was less then and the gap did open up a lot more than it's last 52 week smallest margin (around 1.4). Don't be surprised if the margin goes to as much as 2.5 if the stock continues north. Wouldn't expect it to move closer to the 3 cent mark until a couple months outside of expiring (ie: Octoberish next year). If you believe the stock to the be heading into the price realm where the most recently posted broker reports suggest for the next 12 months, then the multiplier will be greater than the full security - if you are planning to sell and not exercise. IMO DYOR Hope this helps. Cheers
PEN Price at posting:
3.7¢ Sentiment: None Disclosure: Held
