InterDigital Inc (IDCC)

[vegas options]

jealmc79, when you sell an 85 put you only get the put money , You are liable for the $85 to the person that sold you the puts. The person selling the call does not have to have the stock available as most calls expire worthless. .The reason someone does this is they now know that whatever happens they are buying 1M shares at $74.30 per share. There are no dividends involved in this case. when you enact your options if they do not have the shares available will be short. The reason that this is done is to buy 1M shares without moving the market.