Market Calls

Quote from Rearden Metal:

They will? How do you know the underlying will go down $3.80?

My bet is the OCT 45 CALL selling for $4.00 will be worth $1.78 a difference of $2.22 by Thursday. The underlier will trade into $46.20 in the same time period. Rough estimates.
 
Quote from Cluseau:

My bet is the OCT 45 CALL selling for $4.00 will be worth $1.78 a difference of $2.22 by Thursday. The underlier will trade into $46.20 in the same time period. Rough estimates.

Not exactly. You could have sold the call for $4.10 and bought it back for $3.20.


WMI was a good mention. Thanks.
 
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