Call Option PremiumBefore the huge jump last week when CXR was trading around $30 the bid on the Nov $32 strike call options was $15.2. This meant you could buy CXR for $30 sell a covered call and instantly get $15/share back or an instant %50 return if you look at it that way. Now since the runup the bid on a $42 strike Nov expiry is only $5.2/contract.
There must be something wrong witht he pricing because the numbers from my brokerage just don't make sence. It seems like the quoted bid/ask is based on a $30 cxr sp. BUT if the quoted bid is real then you could make a killing just buying the call options assuming there is some kind of a takeover offer.
If there is an offer the sp will instantly jump to just below the bid. If this happens I'm selling covered calls on my shares. Lot's of if/then situations to consider right now.