Buying LEH here at $.20 is like a cheap option which never expires. Of course at this time, sellers are anticipating it going to zero... might not be true, however. I remember years ago when Storage Technology traded down to $.31... went into BK... and about 2 years after it came out was trading $80. (Don't recall, however, whether the shareholders before BK got anything out of it. Could be the reorganization issued new common and the stockholders before BK got zippo. ?? )
Do you think he would've spent a few hundred percent on implied volatility? I wouldn't be surprised if it was a total loss for him just like everyone else.
Are you kidding me? LOL apparently you're not as smart as you make yourself out to be. When the company emerges from BK, new stock is issued. The old shareholders get squat, they hold the old worthless share. Often the original debt holders get new stock on top of restructured debt, so you would want to buy the company's debt in order to get access to the new stock. With LEH, such is not the case, it's Ch.11 not 13