Probably not. The fair price for an option is a combination of the difference between the strike price (34 cents for ARUO) and current share price (66 cents, for a difference of 32 cents) and a premium or discount based on the trader’s estimate of how the share price will change between now and the option expiring. It’s not a question of how many options are out there.
As the expiration date approaches, the price that options trade at will be close to that difference I mentioned. After all, if the option is being sold at a premium, you’d just buy on market. Conversely, if the buyer is offering less, you’d convert and sell the share on market. There’s more room to buy or sell at a premium or discount when expiration is a while away; but even then, the above still holds true to an extent.
Probably not. The fair price for an option is a combination of...
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Last
18.0¢ |
Change
0.005(2.86%) |
Mkt cap ! $443.5M | |||
| Open | High | Low | Value | Volume |
| 17.0¢ | 18.0¢ | 17.0¢ | $1.087M | 6.257M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 200375 | 17.0¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 18.0¢ | 787496 | 25 |
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| Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
| ARU (ASX) Chart |