Because of the leverage of options it can be feared that on a retrace the options will become out of the money quite quick so it is a fear thing in my opinion. When a stock starts to run in the very early stages there is virtually no risk so they are priced without fear of being out of the money for too long and a premium is easily justified.
That's how I feel anyway so I suspect that many other traders feel the same.
- Forums
- ASX - By Stock
- AUL
- premium of options
premium of options, page-4
-
-
- There are more pages in this discussion • 5 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add AUL (ASX) to my watchlist
Currently unlisted public company.
The Watchlist
FHE
FRONTIER ENERGY LIMITED
Adam Kiley, CEO
Adam Kiley
CEO
SPONSORED BY The Market Online