Your assessment is absolutely correct, what we are referring to...

Your assessment is absolutely correct, what we are referring to though is the fact that the oppies are at a discount to where they have recently tended to trade in relation to the heads.

There has tended to be a smaller gap between the heads and oppies, therefore the premium has tended to be higher than it currently is. With 2.5 years to exercise, the extra leverage they provide and the fact they have traded at a higher premium very recently leads us to believe they are a bit undervalued and lagging behind the heads.

Hope that makes sense and anyone else feel free to clarify/correct me where necessary.

Thanks