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Author: mungofitch Big gold star, 5000 posts Top Favorite Fools Top Recommended Fools Feste Award Winner! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 14493  
Subject: Re: FKA: LUK Date: 6/27/2013 9:11 AM
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To compare the Jan 2013 $15 call which has a premium of 31 cents for 205 days to expiry,
the Dec 2012 $15 call has a premium of only 11 cents for 177 days to expiry.
(I took the mid price between bid and ask for both).


Those two different options are on two different stocks.
The December one is a LUK option (strike price applies to cost of one Leucadia National share)
The January one is a LUK2 option (strike price applies to cost of one LUK2 right which is .81 Leucadia National share)

So you can't compare them directly.
If you do the proper adjustments you'll find they still have substantially
different time premiums, but that's because they have very different
strike prices relative to the end result of a LUK share.
But it's the normal variation--a call option on IBM with strike $200
won't have the same time premium as one with a strike at $160.

Jim
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