Ann: Trading Halt, page-19

the[y] donate to HC to help out the mug punters like me
I guess you're referring to me?
could please give us a value on the oppies i would appreciate it.
sure.
The 0.008 / 3 year options have a theoretical value determined by a widely accepted valuation tool known as Black & Scholes.
the online calculator you can access here:
https://goodcalculators.com/black-scholes-calculator/
The all important variable is the annualized volatility, which, given the 75% decline in the TMK share price over the past 12 months is necessarily high ..and much greater than the usual 60% to 75% found in most boring industrial stocks.
However, this is a beaten down stock[ but not going bust due to debt ] in an an out of favour sector so its volatility is 200%. Yes, that's high.
check this:
https://vlab.stern.nyu.edu/volatility/VOL.TMK%3AAU-HL.APMEM
So, if we enter this 200% volatility value with strike price 0.004 and exercise price 0.008 with 3 year expiry we get a theoretical value of 0.0035.
No, I don't expect the immediate market value - on ASX- will be 0.0035. Note: your broker may allow you to buy at this mid-price it's called the Centre Point.
But I do expect that there will be heightened interest at say 0.002 for the options ..possibly funded by the switch from the TMK at 0.004.
Were TMK to find success in the intended drilling of the additional pilot wells then both TMK and TMKOB and TMKOA [ the ticker code for these new subject options] will likely increase and the price differential to widen.
If the company proposes a consolidation of capital [ and options with it] the on- market price dynamics will be affected but not the fundamentals.
We're in for interesting times. And yes I participated in the placement.