hopefully this stock will start to move to the old high around $52 starting next week and the may options $45 and up will become attractive .we have about 25 trading days till may calls expiration can this stock surpass $45. strike by them only trading around $1.30 a share and 1 contract is 100 shares so at $1.30 plus commission to have control of these shares if they surpass $45 a share like to $50 you in the money of $5.00 per share if you buy 10 contracts at $1.30 pershare at a cost of $1,300 plus commssion and this stock blows around $50. or better you can make a nice profit on a $1,300 ivestment but you have to realize you can loose that $1,300 if the stock goes down or stays in the price range where as you get closer to the option expire date it will start to depreciate.so if you think this stock is going to make a nice run in may then that is a way to go if you had a 100 contracts at a cost of say $1.30 a share you are gambling $13,000 with 10,000 shares in your control if the stock runs you can do very well.a $55.00 share price will make you $100,000. are you a gambler ?
I agree, I think looking for $50+ by then is a reach and if I were going to buy OTM calls for May I'd want to pay a smaller premium. OTOH I love the January calls & bought some $40's last week to add to what I already have.