Hi, Jimmyll !  I see you joined Agoracom on 30 June.  Looks like I must have failed to note it.  Welcome!!!  I also saw that I had not rated you, so I fixed that and rated you as a 5/5, something I hope everyone else will do on this Hub now.

In regard to Pavel's Buy Option strategy with a Strike Price of $25.  Looks like a good strategy to me.  Follow up note from Pavel indicates that the Ask price has already gone up 50%, according to Pavel.

Remember, you don't have to keep a Call Option you have bought until the Expiration date.  It has intrinsic value.  On the other hand, the closer you get to the Expiration date the greater can be the loss in time value.. unless the underlying security value is rapidly increasing toward the Strike price at the same time.

I think Pavel has a good strategy.  Is there risk?  Of course.  Judge Du could rule against LAC and that would be a negative for this strategy.  Buying Calls does not obligate you to ride that horse to its destination and, in the meantime, there may be substantial increases in value of the Call that the owner of the Call can turn around for profit by selling the Call.  

In this instance, one strategy might be to sell the Call one market day before Judge Du announces her decision... if there is any doubt on the part of the owner of the Call as to how her decision will swing.  Most likely, in that event, the price of the Call will still be over and above what you paid for it, assuming you bought the Call today or on last Friday.

I like the strategy, but I would probably let it roll past the Decision date by Judge Du, meaning I would gamble on a positive outcome and wait to sell the Call a few days after her decision but before time decay would kill my potential profits.  I have forgotten what day is Expiration Day for September Calls, but I think it is after 20 September.  If I am wrong, someone will correct me.  I am too lazy to look up the Option Chain info right now, but it can't be anytime before the anticipated date Judge Du is to announce her decision.

Pavel, I like your strategy.  Just wish I had "discretionary funds" to put money where my mouth is on your strategy.

Okiedo

PS... Hey, all you LAC Hub members... off and on... give Jimmyll a 5/5 and welcome him.