NVA 6.90% 15.5¢ nova minerals limited

A very strange phenomenon which I can not understand in regard...

  1. 10,370 Posts.
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    A very strange phenomenon which I can not understand in regard to the option trading and price. Why "someone" keeps buying the option at 0.017 while the current head price at 0.031 is below the option exercise price of 0.0325. It means that those buyers paid the premium for time value of $0.01825 i.e.. 0.017 plus 0.00125. In other words, if they convert the option to head at 0.0325, the cost of head is $0.0495 which is 0.0325 plus 0.017. Can someone in this forum enlighten me. Thank you.
 
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