acreage, the further the options progress to expiry and the higher the share price goes, the further the price difference between the heads and options will go towards the strike price (5c). This is due to the diminishing leverage on offer as well as the decreasing time factor.
The bottom line is that if one is not short term and strongly believes in the CCC story, the options make a far better buy. They are now fairly priced. Last week I wrote on here that they provided a great opportunity as they were trading at a greater differential to the heads than usual ie 3.2c and not the usual 2.7c. The evidence of this is that when the heads fell 1c, the options fell only 0.5c. If I were buying more, I'd be keeping an eye out for this as it adds a short term margin of safety for peace of mind.
CCC Price at posting:
75.0¢ Sentiment: Buy Disclosure: Held
