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Adecoagro S.A. Message Board

  • thugwatch666 thugwatch666 Mar 18, 2012 11:15 PM Flag

    Tiny premium in $10.00 calls

    June $10.00 Call- ask $1.45
    Sept $10.00 call -ask $1.90

    AGRO- $11.05

    All prices as of close Fri 3-16

    With 2 mil shs traded Fri these small call premiums mean what? If AGRO is headed up they should be higher. Then again, the open interest is also tiny on all AGRO options.

    The question is-- are the calls a great buy for a small timer as there aren't enough out there yet for big timers. Or will AGRO tank once again and that is why the call premiums are so small.

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    • The post was made March 18 with AGRO at $11.05. The June 16 2012 $10 call at the time was asking $1.45. Now it's asking 30 cents with 63 contracts offered, open interest 306 contracts.

      A run to $12 by June makes the 30 cents worth circa $2.00. The open interest in AGRO options is almost nonexistant. The Sept $10 call is 50 cents but only 4 contracts offered.

      Keep an close eye on a price collapse in $10 calls to the 10 cent-20 cents range. If enough contracts are being offered the low cost bet is worth considering.

      Ameritrade charges $7 contract- to steep at 7 cents a share. But Ameritrade is excellent for easy tracking of option price action.

11.19-0.030(-0.27%)Jul 22 4:02 PMEDT