AKN 5.00% 1.9¢ auking mining limited

Heads below strike put the value of the option in negative...

  1. 5,541 Posts.
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    Heads below strike put the value of the option in negative territory, you are paying a significant premium for its long dated expiry.
    Potential leverage goes both ways, these options could be as low as .001c and still be paying a premium.
    I think they are over priced at the moment but that doesn't mean they'll go cheaper, options do funny things.
    They are always fun due to the leveraged outcome they offer, but for all the excitement don't forget they often expire worthless.
    They are great to trade but at present, if you were to convert, the heads need to be 30c to break even if your paying 5c for the options
 
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