billb

Why I'm Buying Circuit City Calls

I hear what you're saying David, I just think you underestimate theta.

Why I'm Buying Circuit City Calls

Buying calls in this case doesn't make a lot of sense to me. You're speculating that CC may get bought out at some point, yet you're buying a wasting asset to make this bet. It seems to me that time is not on your side here necessarily. Unless you're speculating that a) they'll be getting bought out and b) pretty damn fast, the call purchase is a bad idea. Now I love options (almost exclusively use them), but this is a case where I'd be buying stock and waiting for this buyout.