Quote - "They "seem" cheap at $0.055 (implied volatility is one of the primary measures for options pricing and at $0.055 these arguably aint cheap) because you will literally have to have three years of more then 40% compounded annual growth in the stock price from here for them to be worth anything. If you get a very good 30% annual growth in ASM's share price compunded, they will still be worth zip, zero, silch on expiry."
@flammoThe amove statement is quite true and it depends on your situation.
I bought 200k of the options for close to $10,000 (some were at 4.5c) and today I sold 35k ASM heads for 57c (nearly $20,000) so if the options lapse out of the money (ie, below the $1.74 conversion price) I am am clearly worse off than if I held my 35k ASM shares throughout and they maintain a reasonable price eg, a dollar give or take. However, it is my belief that if ASM actually reach development stage it will be quite valuable, several dollars or more, and the 200k options (less $1.74 conversion for each option) will be quite a significant sum.
It is all really a question of whether the Dubbo project succeeds or is at least seen as significantly viable within 3 years.
(20min delay)