Arena Pharmaceuticals, Inc. (ARNA)

[hlegweakreturns]

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How much would be willing to pay for the right to buy ARNA at $4 a share anytime between now and January 17, 2015, or 478 days from now?

Today, the last sale was at $2.68 for those contracts.

So, if ARNA holds at the brink (where we now stand), and sales increase even at a modest rate, do you really only think it will be trading at $6.68 478 days from now (the right to buy it for $4, plus the $ you will have to pay for it)? If it does fall off of the brink, do you think it will still be below $6.68 a year 478 days from now? If so, why are you even it?

I bought some of those call contracts at this level. Seems like a reasonable investment to me.