as I understand it the value of an option has the intrinsic component and the time value component. The intrinsic value is the price difference between the stock and the striking price of the option. If the stock price is less than the striking price then the intrinsic value is zero. The time value component is the premium value for the time left on the option before it expires. It's value is subjective. The time value eventually goes to zero as the remaining time goes down on the option approaches the expiration date of the option.
On ISNOB Frequently it appears the option is trading at a price below the intrinsic value. I don't know if this Frequently happens with options.
Anyway I like this. IMO the options are trading at a discount. If I understand options correctly, I can exercise the option for 14 cents per options and get the stock. If because of liquidity the options trade below their intrinsic value I have this alternative,
If the ISNOB price eventually includes the time value premium then this is a welcome bonus.
On the other side of the discussion, I'm mindful the stock is more liquid and faster to sell than the options.
ISN Price at posting:
72.5¢ Sentiment: Buy Disclosure: Held
