TCF, Your summation of WCUO options being expensive is plain wrong... It never is as simple as stating the current share price less the current trading price of WCUO equaling the exercise price and from that valuing the options...your saying that the options should be worth 27c-25c=2c is funny...
27c is the current sp, (or in that trading range) 25c is the exercise price 2c is the current premium
saying this is probably the biggest misconception of valuing options, and/or determining value... It never is that simple as there is time decay... and especially when Volatility is as high as it is with WCU (as I previously explained)...
Ok... Tell me TCF, let us try a new angle of what you are saying...
what do you think the share price will be on expiry date (jan 2010)? I want you to give me two guesses/predictions... those two predictions, I want you to tell me what you think the share price could be on the high side... and a another price for what the SP could be on the low side.... ..... Off this I can derive a valuation for you based on your assumptions.... This would be a better way of you valuing them compared to your premium theory idea...
WCU Price at posting:
28.5¢ Sentiment: Buy Disclosure: Held
