I agree. It's the attitude and the position as well as the nature of the trade defines whether it's a gambling move or not. But I guess to a speculator, a 15 cents option limited the absolute amount of the downside risk effectively(given the number of contract trader opened is not unreasobable large). And that's why he said it's not much of gamble.. I think he implies the absolute downside risk of this bet is not significant.
Vol is jacked in LEH for good reason. If the stock goes back up 10% or so and sits around for a day as the rumors settle down those calls wont be .10 bid for long. Even if someone does step in and make a play for LEH they're not going to pay a 50% premium over todays stock price. If for example they a firm annouced a massive 40 buck bid for LEH in a play those calls are garbage. Like I said they're not much of a gamble, more on par with a lottery ticket. If all the planets line up ... short squeeze, then a massive take over bid all while the FED declares the credit crisis over and they guarantee all bad loans right after they strike a massive oil find under LEH's head office then those calls could be huge, otherwise 15 cent options are not much of a gamble. You wanna gamble buy some at the money and take a major gamble
LEH is turning over ... looks like new lows are imminent. Implied vol is up over 100. I'm selling otm june calls. I feel like gambling too.