EPN 0.00% 2.4¢ epsilon healthcare limited

THCO Options (THCO)

  1. 97 Posts.
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    The options on THC (ASX code THCO) have a $0.40c strike and have almost 2 years to expiry. Fair value based on the shares at $1.10 is therefore $0.70c and that doesn't factor in any time value.

    Due to less liquidity in the options sometimes the volatility of THCO can be around double that of the shares so be aware of that ie. when the stock is going up, the options may rally a lot faster and vice versa.

    Some profit taking on the options this morning hence them lagging the stock right now. You don't have to exercise them if you don't want to but can at any time. You can trade them like you would trade an outright share. More 'bang for your buck' ie. you can buy more options than shares given the $0.40c give or take price differential. DYOR.
    This is not a recommendation to buy either or - just that I noted some people weren't aware of the THC options and how they work.
 
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