They appear to remain in very tight hands or at least a de beers holding pattern.
I am astounded by the arb these days.
I suspect they will cool down a tad when and if the sp reflects an 'in the money' and better holding pattern.
Liquidity from where I sit on the screen appears to be tested consistantly from perhaps a Pattersons trigger where the majority of them remain under lock and key I suspect.
From a take over perspective,,,any offer wouldbe at a premium to the market,, and considering any take over would in all probability be at multiples of the current sp,,,the arb would be -2c + remaining time decay value .
As an absolutely hyperthetical example is as fllows,, if say a takeover was effected Jan 2013 with an offer on the table of 7.6cps,,,, any perceived on market time decay arb would dissolve. But if the sp was 7.6cps in Jan 2013 and there was no takeover on the cards,, the options would still trade at a time decay premium of something in the order of 10 to 20% of the strike value,,, or in other words 5.7.to roughly 6c ?
This is absolutely hyperthetical,, please understand the sp could be 0c to 10c plus or minus 0c to 10c in Jan 2013
ESI Price at posting:
1.5¢ Sentiment: None Disclosure: Held
