Australia's largest stock trading and investment forum Australia's #1 stock forum

CTM

Click for more information

4.65%

45.0¢ centaurus metals limited

The fact that you have no understanding of the time premium of...

First 145 Last

Share
Profile

Follow
binwood

9,019 Posts.

3863

03/02/18

11:46

Post #: 30791824
Share

Originally posted by Megagem ↑

I will use a simple example below to prove the point.

If a person had $1000 to invest in CTM earlier this week and believed it would be worth 1.5c before the end of April, they could either:
1) Buy 100,000 CTM @ .01
2) Buy 333,333 CTMOA @ .003
3) Buy 200,000 CTMOB @ .005

Then theoretically, if the SP reaches 1.5c :
1) CTM worth $1500 or 50% gain
2) CTMOA instrinsic value .005 worth $1666 or 66% gain
3) CTMOB instrinsic value .005 worth $1000 or 0% gain
(I use the instrinsic or actual value as it removes any arbitary time based premium and offers a pure comparison)

The current SP at 1.7c or actual returns:
1) CTM 1.7c worth $1700 or 70% gain
2) CTMOA instrinsic value .007 worth $2333 or 133% gain
3) CTMOB instrinsic value .007 worth $1400 or 40% gain

As can be seen the SP didnt have to reach 1.7c for the OA's to be a better proposition than the OB's or heads but rather any price above 1.4c

Expand

The fact that you have no understanding of the time premium of options means you probably shouldn't be having this argument.

CTM Price at posting: 1.7¢ Sentiment: Buy Disclosure: Held
7 Upvote

0 Great analysis

Reply

Top Stories

LIN

Lindian shares jump on news of low-cost feasibility results for Kangankunde REE project

SS1

Sun Silver gets that drill to thrill feeling from high grade hits at Maverick Spring

ITM

iTech lifts MRE at Eyre Peninsula Graphite Project by 300%

Has uranium run out of steam? An update on nuclear markets & developments ahead in FY25

ASX Market Update: ASX200 in the red but real estate faring better | 1 June 2024

There are more pages in this discussion • 1,057 more messages in this thread...

First 145 Last

Add CTM (ASX) to my watchlist

(20min delay)
Last 45.0¢		Change 0.020(4.65%)		Mkt cap ! $223.2M

Open	High	Low	Value	Volume
43.0¢	46.0¢	43.0¢	$70.96K	156.3K

Buyers (Bids)

No.	Vol.	Price($)
2	60617	45.0¢

Sellers (Offers)

Price($)	Vol.	No.
46.0¢	5000	1

View Market Depth

No.	Vol.	Price($)
2	60617	0.450
1	600	0.440
3	18674	0.430
1	11857	0.420
4	43317	0.410

Price($)	Vol.	No.
0.460	5000	1
0.465	7000	1
0.470	8000	1
0.475	18045	1
0.480	92246	3

Last trade - 16.10pm 01/07/2024 (20 minute delay)

CTM (ASX) Chart

SPONSORED BY