wmto massive premium

Was just perusing some older threads, and noticed someone harping on about buying WMTO whilst we still can.

For those readers who are confused, WMTO strike at 35c, a 13% premium over the current price of WMT. Yet WMTO are trading at 14c as I write this, representing a 72% premium to current WMT trading prices once adjusted.

Unless WMT (which DINES has recently downgraded from BUY to HOLD) can produce some exceptional results or SP movements in the short to mid-term, the options price appeaars to be headed for a correction to a more sustainable premium level. The increased leverage does not seem to, at this stage, justify the premium and increased risk.

Perhaps a minor correction of the ASX is needed before WMTO rerate to a more appropriate level, or the prices may adjust themselves, or I may be proved wrong, but one fact is that it is uncommon to see options trading at such an unsustainable premium for long.

WMT is a stronger buy at present than WMTO, for those who must hold.