InterDigital Inc (IDCC)

[whizzeresq]

Dropping on low volume...don't forget a week from Friday is options expiration day. Right now, for the December 20 call options there is open interest of 3,238 contracts and for December 22.5 an open interest of 3,887 contracts. If the stock ever closed above 22.5 on expiration day, over 700,000 shares could be called away. January is even more interesting.

For Jan. 15 calls there is an open interest of 1,740 contracts, for 17.50 calls there is an open interest of 6,375 contracts, for 20 calls there is an open interest of 7,509 contracts, and
for 22.50 calls, an open interest of 7,335 contracts.

Based on this open interest and the open interest on strike prices below 15, if the stock closes above 22.5 in January, over 2.3 million shares could be called away. Needless to say, on low volume days like today, our call writers have a vested interest in keeping the price down. As I recall, the one time that the stock got away from the option writers in a big way was the December 99 run up. Hopefully, we could have a repeat with some good news going into the start of the year.