I feel like gambling LEH calls!

Discussion in 'Options' started by jonbig04, Jun 3, 2008.

  1. I feel like buying some LEH calls..maybe the june 45's....never know right?
  2. mark2


    Ya.. who knows... call is a good way to play what's on the news today if you beleive the market is overreacted .... Best luck.
  3. dmo


    Premiums are mighty pumped in LEH - about 140% ATM - be careful!
  4. mark2


    That signals a big move ahead. Hope it's a positive call this time.
  5. I was taking this the other way and looking at the July 25.00 Puts
  6. mark2


    either way is possible because the outcome will be almost 100% news driven ...best luck.
  7. 15 cent calls not much of a gamble
  8. Uhhhh I hate to burst your bubble but when it seems like every news agency in under the sun is circulating rumors that LEH is in trouble, any call options are a gamble. Shit one could make the case that call options that far out of the money, expiring in a matter of weeks are always a gamble.

    There are rumors flying all over the internet...saying LEH is the next BSC etc etc, but no one really knew about BSC. Besides I tend to believe the opposite of what everyone thinks. Ill probably lose the money yea, but who knows maybe LEH comes out with information that completely exonerates them...that could cause a pretty large short squeeze. Its a gamble.
  9. ditto
  10. I sold my last put today and bought a vertical spread (+30, -33) on June for the call side ...

    The vol is just so goddamn high it makes it hard to justify buying outright calls.

    The co has a 6B larger cash position ... The news is too public. I'd be willing to say making the bet that it won't be a collapse is likely the winning one from here. (just don't pay too much for vol, because you could be right and still lose $$$ that way ... this may only move to 35, since dilution might occur regardless)
    #10     Jun 3, 2008