When you feel that a share has fallen too far
and has the ability to post a double-digit gain in the short term, the options
can offer a greater % capital gain, hence the premium that is paid for them
here.
As I write ITC are trading at .32 and ITCOD at .18 Now the buyers of ITCOD
have to pay another 17.5c = .355 why would they not just buy the head
share, save themselves .035 a share and avoid the clerical work ? What am I
missing here ?
MN
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