what hes saying is that a move from 4c to 5c, is 10k profit (1m) and the 1c to 2c is also 10k profit for less outlay. And that is just the shift in intrinsic value. The argument is that the market will pay a little more for that bet, as a look at time premium, expecting that move (4c to 5c) because it can make 100% on the shift from 1 to 2c. Vs, 20% on the shift from 4c to 5c. It is sound logic, that increases the value of the option at that point.
But if the takeover value is locked at 4c. then no time premium can apply.
OSL Price at posting:
1.1¢ Sentiment: Buy Disclosure: Held
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