KDRO - Count Down, page-7

Mate, these options have traded at a discount every single trading session for the last 3years. The reason is liquidity. That is the only reason.

Borrow is also very expensive for KDR, and hard to source. So, hedge funds are finding it hard to short KDR and buy KDRO which would normally tighten the spread.

Clearly they are a bargain trading at these levels. If you intend to exercise them, then the lack of liquidity is irrelevant.

However for those less patient, and wanting to sell out before exercise date, they unfor ( or fortunately for those smart enough to bid at decent discounts) are having to hit the bid...which is mostly thin, and at a discount to the market.

#simple