ndo v ndoo, page-3

It's to be expected...

Geater leverage leads to greater risk...and therefore, options tend to under-perform whenever the market becomes unsure.

Once the dust settles and the new floor has been established, I would expect them to move back to "fair" value once again.

Generally they have carried a 3-5 point premium in recent times, however as the share price rises higer and higher, this premium can be expected to reduce somewhat.

In time, I would expect the options to travel on-par with the OFP's, maintaining no more than a 1-2 point variation either way.

Having said all of that however, in my opinion, they are still very bloody cheap...which is why I keep topping up!

Cheers!