Using a 1.5% cash rate, no dividends (!!) and my calculated 12...

Using a 1.5% cash rate, no dividends (!!) and my calculated 12 month volatility of 27, I get a theoretical option price of 5.5c at 42c for the underlying security (TLG) for a 31/12/18 option expiry and an exercise at 45c. To put it another way, using the same conditions as above but with the options at 12c and the paper at 42c, I get a theoretical volatility of 56 which is high on a 12 month basis but volatility is increasing looking at the chart action.

I prefer holding the paper myself mainly due to liquidity issues - these companies are like lobster traps with big positions - they entice you in but getting out of them can present a problem. That won't be the case with TLG of course!