time and leverage are different.
if the imuob option (4cent exercise) was due to expire in 2 days and heads share price was 20 cents then the imuob “should” be 16 cents. No time premium allocated.
However you could still buy the option if you knew or suspected an announcement was due the next morning.
If the next morning the heads rose to $1 on the announcement (500%) then the imuob option would now be worth 96 cents (600%). This is leverage , meaning as the head rises the underlying option follows and therefore rises at a greater percentage.
Premium is just what you are prepared to pay over the “natural” price of heads price minus exercise price and this will be made up of a combination of your sentiment about the future of the stock ,the time left on the option and attraction of the leverage afforded to the option.
hope that makes sense. I’ve had a couple of ambers.
- Forums
- ASX - By Stock
- IMU
- Media Thread
Media Thread, page-943
-
- There are more pages in this discussion • 14,703 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add IMU (ASX) to my watchlist
(20min delay)
|
|||||
Last
4.8¢ |
Change
-0.002(4.00%) |
Mkt cap ! $356.9M |
Open | High | Low | Value | Volume |
5.0¢ | 5.0¢ | 4.7¢ | $2.298M | 47.86M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
5 | 1925982 | 4.8¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
4.9¢ | 3452098 | 12 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
5 | 1925982 | 0.048 |
33 | 4297134 | 0.047 |
47 | 3841303 | 0.046 |
53 | 6064000 | 0.045 |
11 | 2329545 | 0.044 |
Price($) | Vol. | No. |
---|---|---|
0.049 | 2620667 | 8 |
0.050 | 2639213 | 14 |
0.051 | 6431004 | 11 |
0.052 | 2071350 | 7 |
0.053 | 418882 | 5 |
Last trade - 16.10pm 27/09/2024 (20 minute delay) ? |
Featured News
IMU (ASX) Chart |