InterDigital Inc (IDCC)

[jeffree]

re; November options...


If you click on "options chain" and Nov. and "all moneyness" (above, on this board)...you can see the remaining open interest in contracts...(how many Shares get exercised)...

One has to believe that a high % of these were originally purchased by short positions as a hedge against SP upside...
Also, it is a stealth method of covering a short position without the "obvious, blatant, and observable" purchase of shares in the market, which would Drastically Move the SP..
In effect, the short position is Still there, inherited by the options (naked) writers...and of course, the writers of covered calls sacrifice their shares in exercise...

Personally, when I look at the "motivations" behind certain trades, I can come to "logical conclusions"...It is neither a science, nor perfect...but I see a Very Large, and Vulnerable short interest, much of it held by "trading professionals"...

The rules for exercise of options Used to be different...Now, if the expiry SP allows the contracts to be In the Money by even 1c the contracts Will exercise into a share position...

I believe the $50+ SP on Friday close shifted a good-sized portion of Short interest into the "risk pile" of the Call-writers...
Now what they decide to do with their "enhanced, enlarged" short interest...well...

Draw your Own conclusions...


Happy Thanksgiving all...



...jk...