After years of trading, I thought I had a reasonable...

After years of trading, I thought I had a reasonable understanding about the spread between fully paid shares and options.

However, I just don’t phantom the premium some punters are prepared to pay for the PENOA. Atm, as I am writing this, the PEN vs PENOA difference is 1c.
Yet the PENOA have an exercise price of 3c and a sunset date attached to them.
The fully paid are just that Fully Paid with no call for further funds or a future lapse date.

Also, I don’t buy the ‘leverage’ argument.
Why?
Because it is not supported by the relative low volume of PENOA traded. As a speck stock the PENOA liquidity is a concern.

Everyone to themselves, but if PENOA buyers/holders believe in the PEN story and that something will come good before 30 June 2012 they would, in my book, be better off buying the real thing at these low prices.

OT - aren't those MEO's flying again today - $1 on the horizon before the farm-in announcement ?