options back to fair value, page-29

re: game over....18 cps Sarcophagus, they wont move in parity. Ive plugged some numbers into my spreadsheet and if bgf goto to 20c today (wishful thinking i know), bgfo would be 7.54c. At 20c the delta would be around 0.8, meaning that if it then went up to 21c, bgfo should be theoretically 7.54c + 0.8c.

Theoretically, parity movements won't be realised until the options are deep-in-the money. The delta if the share price is 40c is 0.98, which is still less than 1 (1 = parity)

some of these terms are pretty advanced, pls get a textbook if you dont understand ;)