InterDigital Inc (IDCC)

[teecee56]

vegas.... a trade like this is used for purpose of leverage.....think about it....you can control a million shares and generate a positive cash balance....but you still need to have a large marginable portfolio to back up the margin requirements of being a put seller ..which are substantial....its definitely a hedge fund type trade....if you're the dealer your main thing is the financing rates along with the time decay and the underlying volatility...and thats all baked into the spread between the current price of the stock ...and what was paid synthetically .my guess is the dealer is now clear or fully hedged.....most likely he had a working order....as it was done in pieces and at different strikes.... the risk now lies with the put seller...because he is long the stock...fancy shooting....thanks for pointing it out to the crowd