Active exchange traded funds (ETFs) are a great Aussie invention for investors as well as being a global leading product. They combine the benefits of active fund management (the ‘active’ part) with the convenience of being traded like a share on the stock market (the ‘ETF’ part) – providing the... Show More
This article intends to help investors understand the history of the LIC market that led to the innovation of LIC options, as well as the current LIC option market. It will furthermore provide a user guide should an investor own or wish to own LIC options. Show More
Thanks for the ongoing LIC sector research Will. Z-score on LIC premiums/discounts and new angle !
Carlos, as Roger says, the point was about some of the misperceptions of ETFs (i.e. that they're all market cap benchmark trackers which they're not)
Hi Mark. Thanks for the interest. Vegemite was a big tongue in cheek and meant represent a proudly Australian product rather than any reference to a type of ETF ! You can get a full list of the ETFs in the market in this link https://www.asx.com.au/products/etf/managed-funds-etp-product-list.htm
Hi Luke. You're right. Our bad, D2O options expired on 31/5 not 31/10 as our table shows. At the time D2O was trading at $1.14 with a $1.10 strike price and thus options worth 4c. Apologies for the error and good spot !
Hi Neil. Options are in the money if the share price the option relates to is higher than the strike price of the option. The share price of the LIC is determined by a number of factors, the most important of which I would say is the market returns of the underlying strategy. Strong markets would thus all else being equal, drive a higher chance of an option being in the money. Chris.