iHeartMedia: An Underpriced 'Call Option'

When things go wrong at highly levered companies, the equity becomes a “stub”, meaning that its value is only derived by its convexity. That is, the probability that before an actual restructuring and debt equitization, things might go better thanAnalyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receivin ...