Thankyou Wombat, this is very educational for someone new like...

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grazielle

28 Posts.

17/08/17

17:54

Post #: 26571417
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Originally posted by Wombat2 ↑

This is not meant to be perceived as a ramping post but for those less experienced investors today there is a large price difference between options and the main share commonly called a "head" share.

The options are similar to shares but without voting rights and can be exercise or converted to normal shares by paying an extra amount which in the case of AVZO is an extra 3c.

As I write AVZO are trading at 9.2c assuming there is a 3c gap to the "head" you would assume the head to be trading at 12.2c. In fact the heads are trading at 14.5c which is a gap of 2.3c. It suggests that the options are currently undervalued by 2.3c to what you would normally expect. Given enough time that gap should shrink.

Before you plunge in it might be worth doing some research on the highs and lows of options. I am merely trying to point out a potential opportunity for those that have never bought options on AVZ.

This is NOT intended to be advice to buy. The daily turnover on options is often less than on the heads. Today it is over 34m options traded so quite a few people have taken advantage of what I would term miss pricing of options.

Disclosure I had 1.5m options already and topped up by 200,000 options today.
Cheers W2

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Thankyou Wombat, this is very educational for someone new like me. Cheers!

AVZ Price at posting: 14.5¢ Sentiment: Buy Disclosure: Not Held
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