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33.3%

0.2¢ 88 energy limited

Exercise options, page-81

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ponyboy

1,021 Posts.

17

27/01/18

12:37

Post #: 30600931
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Originally posted by serena ↑

Dear Mr. Smarty Spikeup,

With the assumption that time value is ZERO and the head price is 0.029 (buy side) and option price at 0.008 sell side, there is a gap advantage of 0.001 for each option (arbitrage). In other words, the option price is below the intrinsic value. This signals that in this moment option traders act rationally.

If a trader intends to buy the options at 0.008 in the hope to sell it back for profit before the expiry date, he or she must be very cautious because approaching the expiry date, there may be no liquidity. In addition, please bear in mind that the option trading may cease one week before the expiry date. However, I may be wrong.

This is not an advice. Please do not follow my investment decision or strategy. Gain or loss is in your own hands.

Expand

You keep assuming that the trader does not currently hold 88E shares.

Consider the current holder of 88E shares, particularly if its currently a loss.

Would it be a smart move to sell your heads at a loss for .029 and purchase the options at .008 then convert them back into heads

There is nothing to lose in this case, only a gain.

Only smart people understand this concept

DYOR

Last edited by ponyboy: 27/01/18

88E Price at posting: 3.0¢ Sentiment: Hold Disclosure: Held
2 Upvote

0 Great analysis

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(20min delay)
Last 0.2¢		Change -0.001(33.3%)		Mkt cap ! $86.67M

Open	High	Low	Value	Volume
0.2¢	0.2¢	0.2¢	$4.277K	2.138M

Buyers (Bids)

No.	Vol.	Price($)
161	259563661	0.2¢

Sellers (Offers)

Price($)	Vol.	No.
0.3¢	658572810	203

View Market Depth

No.	Vol.	Price($)
160	258063661	0.002
300	1067518451	0.001
0	0	0.000
0	0	0.000
0	0	0.000

Price($)	Vol.	No.
0.003	657472810	202
0.004	288032799	109
0.005	74259284	58
0.006	118596039	41
0.007	74066869	27

Last trade - 10.01am 15/07/2024 (20 minute delay)

88E (ASX) Chart