RRS 0.00% 0.1¢ range resources limited

rrs/rrso value, page-30

  1. ds
    7,131 Posts.
    re: rrs/rrso nice post cali but the time value rule of thumb only applies very close to maturity. a year or 2 out the time value barely decays at all - the curve looks very flat and decays moderately with about 9 months to go, it decays even faster with about 6 months and falls off a cliff with 3 months - NEOO is a good live example but any option text book will show a time deca chart.

    In RRSO's case if the time value at the beginning of this year was about 3c it would still be about 2-2.5c now. It is always going to be impossible to quantify in the market because we don't know what volatility to put in the equation - I am guessing that with Peru and Puntland news coming over the next 6 months the volatility increase will outweigh the decay in time value - again a good example is NEOO over Sept04-Mar05 - 6 months of decay but because implied vol went up the value of the options increased relative to the spot price of the heads.
 
watchlist Created with Sketch. Add RRS (ASX) to my watchlist

Currently unlisted public company.

arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.