Has anyone else noticed that the VMGO options now have virtually no premium attached to them?
With the stock price at 8.4 cents and the options at 3.5, the market is in effect saying that the increase in the share price will be limited to 0.1 cents between now and November 2013.
It seems to me that under the current trading conditions, if you think that VMG will go higher than 8.5 cents in the next year and a half, it makes more sense to be in the options than in the stock itself.
In fact, if the stock price goes much higher, it would be cheaper to buy options and exercise them right away than it would be to buy the stock on market.
Example: Buy VMGO at 3.5 cents, exercise at 5 cents, for a total spend of 8.5 cents. If VMG is trading any higher than 8.5, you've saved yourself money.
Odd that the gap between VMG and VMGO+5 cents has shunk so suddenly.
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Last
0.1¢ |
Change
0.000(0.00%) |
Mkt cap ! $6.927M | |||
| Open | High | Low | Value | Volume |
| 0.0¢ | 0.0¢ | 0.0¢ | $0 | 0 |
| VMG (ASX) Chart |
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