Level 3 Options

Following on from my post on Level3 and prior to their quarterly results tom0rrow, I thought it was opportune to have a look at the current option pricing for Level3. With data sourced from Yahoo (which generally needs to be treated with caution), the contrast with the liquid Apple options outlined in another post could not be greater. Liquidity is a major issue to consider when looking at options for a firm like Level3. Like the stock itself, illiquid options on a historically volatile stock is not for the faint hearted. That said, the recent stability of the underlying stock over the past 18 months does potentially offer value by way of option pricing formula if Level3 is finally about to deliver on its potential.

click to enlarge 

Level 3 options July 2013

I don’t expect anything major from Level3 tomorrow and would take the selections of Robert Powell at Telecom Ramblings as a reasonable expectation. The long term key for Level3 is sustainable revenue growth but I would be happy with continued marginal movement on costs and EBITDA margin for now.

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