re: I'm seeing a bargain with this stock, what am I missing?

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I don't know, as Russian said, if you think it is going to be at $9 in 15 days, why not buy the shares outright. Seems like a lot of work for minimal gains.

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Options are a way of making a very healthy % return using very little money.

If an investor buys 10 contracts for $40.00 ($.04 X 1,000 shares) and IF the price of AA went to, say, $9.15 before the expiration date, the option that the investor paid $40.00 for could probably be sold for something like $0.85/contract or $850 ($.85 X 1,000 shares) for a profit of $810 ($850 minus the $40 he paid for the option). This ignores the small amount of possible brokerage fees the investor would pay.

So for an investment of $40 the option buyer makes a return of over 2,000% in 15 days.

Of course, the chance that the price of AA going to $9.15 is very low and if it doesn't the investor loses 100% of his $40 investment.

ETA: serious brain fart on my part. The options would not increase to .85 but to probably only around .13 if the price went to $9.15 just prior to expiration. Still it would be a very nice % return on a small investment.