resource stocks article, page-4

The weirest thing is that not only don't the option trade at a premium , they actually trade at a discount , ie they are actually cheaper than the 4 cent pay up value to make them a share in 10 months time .Why is this the case ? Probably because people are generally wary of options , you know whooooo derivatives and all that stuff , and how much their uncle lost in the last mining boom on options .Irational stuff really , as it is just a case of simple mathematics .The other reason likely is this stock is a heavy trader stock , ie they trade the share , the option trade far less frquently , hence it is far less desireable to the trader .