I think the calls look good right now memp is benefiting from nat gas prices in the low 4.00's if you do buy the calls and the stock moves up (like prior to exdiv date) you can spread them by selling the 22.5 calls .
why someone would sell a call for .10-.30 premium for 4- 7 months is beyond me.
Probably some value there, but not a lot of leverage. The highest this has been is just over $21. I don't like spending that much for a call, you can get a LINE $32 call for that price that gives you until 2016 to pay off, and LINE has been a heck of a lot higher than $32.
You're right about MEMP 17.5 calls in the $2.60-2.70 range...Not a lot of leverage, but, in my view, likely to be safe with $20.10-20.20 break-evens. Am expecting a 40-50% return. We'll see how it plays out. I'm in a few contracts at $2.50.
On the LINE '16 calls, I went deeper for the Jan '16 23's at $7.00 with a B-E of $30. If LINE gets to $37, that's 100% gain. Likewise a 100% gain on the '16 32's at $2.50 with B-E at $34.50 if LINE gets to $37. I fully expect LINE to get to the $40 by '16 (actually, much earlier) if there's not too much dilution from mergers and acquisitions, not too much rising interest rate impact, no goofy fracking legislation, etc.