It seems like traders are playing the TRADE in AVBOB and not realising the value in the options themselves. Traders are buying for X cents and selling for half a cent or a cent higher. What they are missing is the actual option is trading at a massive discount and there is sometimes an additional 2c available. This gap will close over the coming days as the long term buyers soak the shares up and put them in the bottom draw for the next 6-12 months.
So if AVB opens at 19-19.5c the options should be 1.5c lower as that is all that is needed to convert them into shares, but for some reason they have been trading at a 2c discount. So the options should then open up at the equivalent of 17/17.5c. For some reason whilst NSW was on holidays yesterdays the gap widened to 3c.
Good luck to everyone enjoying this ride. I am sure the fun has just begun.
AVB Price at posting:
18.5¢ Sentiment: ST Buy Disclosure: Held
