The current share price is 49 cents which is 29 cents below the option exercise price of 78 cents.
The options traded today at 10 cents which is the time value of the options. As the price moves closer to the exercise price, the time value will increase. Once the share price moves above 78 cents, the time value will start to decrease & the intrinsic value (the amount above the exercise price) will increase cent for cent, in line with the increase in the share price.
Theoretically, when the share price reaches $1.07 (29 cents above the exercise price), the option should be valued at 10 cents time value & 29 cents intrinsic value, totalling 39 cents.
By the time the share price reaches 2.07 the option time value would probably 1 cent & the intrinsic value $1.29, totalling $1.30.
SMN Price at posting:
49.0¢ Sentiment: Buy Disclosure: Held
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