ASC 6.67% 1.6¢ adultshop.com limited

ASC Options

  1. 7,484 Posts.
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    If anyone is interested the relative valuations for the OAs and OBs are as follows:

    OAs trading on implied volatility of 102% compared to 104% historical - means they are fairly valued at 31 cents reflecting the fact that they are in the money.

    OBs trading on implied volatility of 65% (Up from 50% a couple of weeks ago). If I assume historic volatility then the options are currently worth 11.5 cents. This will occur as the Ords head towards the $1.00 strike price (Don't have to reach the $1.00 of course) . Or alternatively what this means is that you get a double benefit from the OBs as the Ord price moves up then the implied volatility increases to historic plus the incremental increase in stock price.

    So if the ords head to $1.00 and the volatility stays at 65% then the OBs will be 35cents. If the volatility goes back to historic like the OAs have then the value will be 52 cents.

    As at today. Obviously as time goes on the price declines slightly.
 
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