options trade premium

Hey all,

Just wondering peoples thoughts about how much of a premium these will trade at.

They will be in the money from the start with a long time to go until they need to be exercised, so they will allow traders to get better leverage for their dollar.

If (for example) CVI was trading at 40 cents, I would imagine that the options would be trading at somewhere above 21 cents. Anyone who's been through this sort of thing before have an idea of how much of a margin you could expect?

I have only been through a rights issue with ERG, and noone wanted those things!

I remember trading away my rights for $56!

Cheers,

Tim