lsm options pricing

LSM,

Last year when the options were released when the share price was 22 cents, I used the Black Scholes option pricing model to determine the option price. For a share price of 22 cents the options should have been 6 cents.

Now at 17 cents, the options should be priced at about 3-4 cents, not 9.5 cents. That is why I sold today my options today. I sold IGR's at 13-14.5 cents to get my options at 5 cents a few months ago and sold the options in the last two trading days to get back into the IGR's.

Put simply, the options are 100% overpriced at the moment. Then again, they are only worth what others are prepared to pay. The professionals would be staying clear of the options due to the pricing model telling them they are miles overpriced.

If IGR went to 50 cents or $1, then the options are a good bet.

I am happy to get back into the shares at 15 cents knowing that I sold the options at a 60% profit.

Regards

Kojasper