No it is correct, they didn't buy 50,000 calls but instead put on a call spread of 25,000 calls cost 950,000. The purchaser stands to make 5.3 million if the stock closes at 5 or above by the 3rd friday of may. He will also break even if the stock closes at 2.90. Risk reward looks good to me. There is no way we will stay this low that long.