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clock Created with Sketch. 14/07/15
11:13
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Originally posted by Cesnsheba
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Not based on B&S, just my own calcs. If there is no leverage then there is no point buying oppies as a fall in SP will be a heavier fall (in %) to the options. I think .6/.7 is fair because in the near term IMO the SP doubling is as good as we can expect. That means if the SP doubles, the oppies should trade around 2c which would be tripling. As it stands if the SP doubles, the options will also probably just double so on current levels they will move the same with more risk for no extra reward. On the flip side IF (and I don't expect this is even a chance of happening) the SP halved, the options would do worse than halve, they would probably lose 60% of current value.
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Didn't the options triple when the sp doubled from this point in the recent spike. From what I've observed in the market Options generally don't follow in percentages they follow in pips. Just a thought.
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