It definitely is closer to gambling, but it's also not a position which I think will lose that much value should I decide to sell in the coming week or two. Will likely sell prior to earnings with the hope of selling at $2.40 or somewhere around there with the earnings premium very hyped up
Not with that contract. That's not a good option play, IMHO. It has a delta of .05 Google has to swing quite a bit in a very short time period for this contract to move (a nickel for every dollar google moves).
When I speculate short term I try to give myself 90 days and at least a delta between .20 and .30 (and that is still gambling).
I understand he's just trying to take advantage of a short term spike, but that spike won't move much even on a good google move.