It came to me last night when I woke up just before midnight... If the stock never gets past $14, and he sells the options for $.3 when its price is $13.70 and stock at expiration is $14, then he makes the $.30 off me and $.30 gain in the share price. For a total of $.60. I obviously like my chances better over the next 6 weeks.
As I read this stock, it got beaten down a year and a half ago after being in a range of $16 - $18 when it missed earnings. The question I had was how far would it drop or continue to drop before it stabilized, then, if it could right the ship, head back up. My thinking is that it has turned the corner. I'm betting it is heading back to $16 - $18 range. It will take some time, but I believe it will cross $14 in the next few days or within two weeks, and the options will be in the money.
Watching it trade periodically during the day, looks like there's a steady, low volume purchase campaign going on - maybe short covering, maybe an institution or two deciding it has indeed turned the corner. I see the movement since last Earnings report very encouraging, hope it continues.
When I woke up last night, I could of nudged my wife instead, but experience told me I'd get more accomplished by going over the days problems.