Options are currently 4cents behind the heads, despite providing increase leverage and already being in the money with a 1.5cent excise price. I've owned the options for almost a year now and they've often run at a 1.5-2cent discount but this is by far the furthest I've seen them fall behind the heads. The heads seem to have found strong support around the 18.5cent levels so I'm hopeful the market will realise its mistake and rerate the options up another 2cents (13%).
If one was to convert the options at this differential they'd make 2.5cents just on doing so, which would equal about a 15% return!
AVB Price at posting:
19.0¢ Sentiment: Hold Disclosure: Held
