yeh that is true wanelad. I have thought about this though, and as some of CCC's major projects are coming online in 2 years time i beleive the time value will remain constant as long as the prospect of a much higher sp remains. As they are already in the money the price of the options has no choice but to follow the heads as arbitrage traders will pick up the slack. I am dreaming here, but if we really get pumping with 200m revenues per year as stated in the brokers report then the heads should be worth many many times where we are now, and the time value premium on the options will be negligible (ie 1.6c as of now). In the end the leverage is not as great as some of the other options out there but the risk is alot lower with these.
My last options trade was GDN options with a 3 month life, yet they still had a 3c premium because the potential upside was very good. So my theory is as long as there is a chance for substantial upside, the options will have a healthy time value. To be honest though im not so experienced in trading options, so will be a learning curve for me. (could be an expensive lesson too :P)
CCC Price at posting:
72.0¢ Sentiment: Buy Disclosure: Held
