A key component of option pricing is time – the expiry date for the option.  This goes against the spirit of value investing, you are not in the market for timing a stock.  The leverage component may be ok, if you are confident about he prospects of the stock, but the timing element can ruin your value strategy.  If the call expiry date is far ahead in the future then this may qualify as a pure leverage based value investing but you have to find the right balance beween timing-free straight stock purchase and timing-induced urge to exercise the option.

Tags: