InterDigital Inc (IDCC)

[Grones]

Mickey,

I can only talk about the 'normal scenario' in similar cases. But Friday's action was not what should have normally happened, therefore I have no idea what's going on. But let's say if it was another stock:

The Dec 25 Calls were very likely naked calls, strike price was too close for the actual trading range. People who actually owns the shares rather sell options at higher strike price like 30-40. 8000 contract (=800,000) options will be exercised today. Meaning that that the option writers have 3 days to deliver the shares. I think the majority of the option writers don't own any shares and have to buy on the open market next week.

Option buyers' intention is to keep the shares for a while. They expect the price to rise otherwise they could have closed out the positions on Friday. Additionally they must be capable of holding 800,000 shares on their account, that cost $20M.

But I was wrong predicting Friday's closure so what do I know? :)