Just running through some figures here, not an options expert...

Just running through some figures here, not an options expert perhaps someone can show me a different perspective but i will show the workings of how i have come to the conclusion that LPDOB are severely overvalued.

LPDOB has a strike price of 5c and are currently trading for 1c.
Heads currently trading at 2.6c


OPTIONS-------------------------BAGS--------HEADS
(Strike+1c) 6c heads price 0 2.6c
(Strike+2c) 7c heads price 1 5.2c
(Strike+3c) 8c heads price 2 7.8c
(Strike+4c) 9c heads price 3 10.4c


There is no incentive to purchase LPDOB at the current prices because if you are seeking a couple of bags then that target will be achieved faster by purchasing heads. The value of an option is the strike plus the amount it trades over the heads price.

You only start seeing any real value to owning options over heads over the 3 bag plus range and an important factor to consider that @9c the LEPIDICO MCAP will be around $460 million dollars (upcoming dilution included). Whilst that figure is not impossible, one has to wonder about waiting for any real benefits of purchasing LPDOB instead of heads to kick in around a half billion dollar MCAP (currently 5x the current MCAP).

I suggest that LPDOB should be trading around 0.005 whilst the heads are at current levels.