InterDigital Inc (IDCC)

[littleinvestor]

On the flip side, I think that a large proportion of the Call Writers are covered call writers. The large hedge funds like to get their 3% to 5% monthly income by selling ATM next month out calls. You can't get that kind of return in fixed-income investments in today's financial climate.

When, the calls end up in the money, they have to deliver the shares (at $25.00 in this case) which affords them a chance to liquidate some shares without depressing the value of their remaining holdings. Many hedge funds are having to liquidate part of their equities these days to keep up with the large amount of redemptions they are facing.

So, I think your theory that the large number of shorts that will have to buy and "naked" call writers that will have to cover and cause buying pressure for January won't hold if the shorts are the call buyers and the call writers are large holders doing covered calls. They complement each other's objectives without putting price pressure in either direction.

(my opinion only)