Its the market that values them, and experience says that if the...

Its the market that values them, and experience says that if the market takes a bullish view, of this ripping past 12c, plenty of time to do so, it comes back to a discounted parity of bet. How much X you get from a head investment, and how much X you get from an option investment. Then you see a parity discount, say for example around 50% for the risk. or more/ less whatever the individual will bet with. And the market will ultimately decide that. You would never pay 0% discount at parity, because it is safer to buy the heads for the same gains.

eg. So if you are getting 4X for your head movement, you might buy options at a higher price, until you only get say an 8X benefit on the same movement of the heads. That would be a 50% risk discount. Thats the sort of thinking behind out of the money speculation on ops v heads. You balance the benefit v risk.

So if this was to get to 37c heads, and 25c options, you are getting at 8c heads today, a 4.5 X,
to give that same benefit with a 50% discount etc, that would put a bet on options at 9 X = 25/9 = 2.8c

But that is up to the individual to calculate in their thinking where the heads can get to. It changes if the MC target was changed to 50m or 200m etc.Alters the SP target. That is the speculative part of options buyers, who have to first think if the heads can get past the strike price, and by how much. The market will determine, what parity discount it thinks it should be applicable. It comes down to how much the market perceives the risk of them achieving the out come that will drive the price to the target.

All i can say, is that i have seen long term options, trade closer to LVR of 3-1, sometimes 2-1 if the view is very bullish. But that is again specific to individual stocks.

It comes down to how much leverage, and how much belief a market has. It will out bid to a higher value on options, then lower LVR, if it really thinks that it can achieve the target. Bullish / bearish comes into play. effects sentiment.

Not investment advice.