The trade of options is different even weird because they are potential multi bags at times. For example, some one who would have bought it at 0.002 not long ago would have made 4 bags already.
That was at a time when we were not in up trend. When the trend is settle like with ERI now, people do not mind paying extra to get on board. There are also other factors such as how many options are on issue, how many are available in the market. With memory, ERIOB are only few hence more valued.
That's exactly why some body bought in at 0.013 this morning. I would call it a fair trade as I play in options heaps. Reason is simple, ERI still has plenty to offer, possible take over, big discovery on the cards, maybe a JV etc etc... Also remember, an article will be published in Financial Review this Wednesday...
If SP goes up to 5c which is 100% from 2.5c, options will be trading at some where between 3.5-4c which is 250-300%.
Cheers
eriob, page-9
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