InterDigital Inc (IDCC)

[mickeybritt]

Jeffree


IDCC could sell the December $60.00 calls and get around $8.25


They in turn could sell the $62.50 calls and get arounds $1.25.

This would have IDCC taking in $9.50 thus for them to lose money

the stock would have to be below $50.50 or above $72.00 on the

upside move. Now anything between these 2 numbers IDCC makes money.

Lets say the stock is $57.00 they keep the call money and they get

the stock put to them at $57.00 net profit is $6.50 a share.

Say the stock is $65.00 the call buyer calls the stock in they

paid $1.25 to buy at $62.50 IDCC keeps all the put money as no one

would put stock to anyone at $60.00 and the stock is at $65.00 so

you take in a total of $9.50 and you are out $2.50 for a net

profit of $7.00 a share. This in my opinion would be a good trade.


Now if IDCC Thinks the Huawei news will put the stock over $72.00

they simply but higher put strike price and either leave the call

strike the same or take in less at a higher strike price.


I think the $70.00 will sell for around $16.00 and the $67.50

December calls should get another $1.00 for a total of $17.00

taken in down side stock is below $53.00 upside is stock would

have to be above $88.00

JMO
Mickey