CB,
ELI5 - option purchasers (18,000 this morning) see the share price value at a minimum of 37c on or before july 2021.
ELI25 - it was a wide spread and someone hit the ask this morning on VRXO. it shows confidence in the future share price of the heads, and is a great entry price. It was a better value 3 days ago at 15 - 16c, where many options changed hands.
The current 6c premium on the options *could* be based on the year high of VRX shares (42c) which values the VRXO at 24c. If someone saw the 6c ( 22% - approx 27c - 33) intraday volatility on yesterday's VRX shares, bouncing off resistance at 28c, closing on the high.... then the 6 months time premium for VRXO represents great value and an ability to almost double your leverage.
Truth is - all we really know is someone thought that 18,000 of them were good value @19.
My perspective on VRX is very positive and as i start looking for trading opportunities on this stock - VRXO represents good value, and probable (IMHO) 2x or possibly 3x investment returns in 6 months.
That is - *IF* you know what your doing and understand the risks of derivatives (which have no intrinsic value or asset backing and are actually worth $0)Apo!
DYOR - not investment advice
