InterDigital Inc (IDCC)

[the trading doctor]

there you go jeffy being all vague again! Not everything is clandestine

To me there would seem to be a number of people who owned them with different motives. They could have sold the january 46 calls (today they traded 1814 so far) 6 or 8 months ago, in fact dont they go out as far as a year? on 2/6 the stock was trading at 26.5, If you had 10 thousand shares of that stock at the time, you could have sold 100 contracts got the premium and sat there with the understanding that at any time, you could lose those shares for 46 bucks. Lets assume he bought those shares at 26.50 as that was an 52 week low, if someone exercises them today to gain on the dividend, he lost 10k shares of stock that he paid 260000 for, but he ended up making a cool 200k with the exercising plus the premium they paid to purchase the option

The discussion was about why would someone risk buying all those options to simply pick up the 20 cent dividend? With such a small dividend you have to hope that you can buy the option for the same price as the difference between the strike price and todays price.if it is, you make 20 cents on 180k shares or 36k. Not shabby for a days worth of work.