I am actually disappointed with the current growth of CTPO. I would have though that as they are in the money they would track more closely will CTP in dollar terms yet they are only tracking the heads in % terms.
Consider the first tranch of CTPO I purchased at 3.3 cents. When CTP hit 19.5 cents I can convert to CTP at 16 cents and make .2 cents profit at the same time. I can not understand if CTP was to increase by 1 cent why the options should not closely follow that growth. Whereas that would be about 5% on the heads it should relate to a 1 cent growth on the 8 cent option price equating to a 12.5% increase.
I think that the option price is consistently falling behind the heads price. I do believe this will be realised in the future and there should be a substantial catch up in the option price in the near future if the market is efficient.
In the mean time IMHO the real bargain in CTP is in the options.
Just my thoughts so DYOR.
Cheers
Stoops
CTP Price at posting:
95.0¢ Sentiment: Buy Disclosure: Held
