I have already made an effort to understand oz,I have been trading and writing both call and put ETO's since 2002, ETO
's are much more predictable when compared to company options IMO, they sometimes cannot be compared to a text book option valuation unless you factor in a massive implied volatility.
GTEO has been 'expensive' as you put it, because there is only 26mil of them out there, most are sitting on them, like me, the stock has some multiple upside potential and upside multiplier is better than downside as mentioned before. I know ETO's are also in limited supply but if they vary too far from calculated value, it's usually a sign of insider trading. One important point is that the stock under which ETO's are written is much more liquid than GTE, as such I guess GTE is potentiAlly much more volatile, as it can change in value by 30% by trading less than 1% of issued stock. What equity with ETO's can do this regularly?
This is why traders are willing to pay 10c or 1/3rd GTE at 30 for 'time value'
I dont think the market has ever mispriced these options, the market makes the price.
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Last
2.7¢ |
Change
-0.001(3.57%) |
Mkt cap ! $11.74M |
Open | High | Low | Value | Volume |
2.8¢ | 2.8¢ | 2.7¢ | $24.68K | 893.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
2 | 359079 | 2.7¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
2.8¢ | 133043 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 359079 | 0.027 |
3 | 166000 | 0.026 |
10 | 8765736 | 0.025 |
1 | 25000 | 0.024 |
1 | 47664 | 0.021 |
Price($) | Vol. | No. |
---|---|---|
0.028 | 133043 | 2 |
0.029 | 384231 | 2 |
0.030 | 25808 | 1 |
0.031 | 252748 | 2 |
0.032 | 154622 | 1 |
Last trade - 16.10pm 04/09/2024 (20 minute delay) ? |
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GTE (ASX) Chart |