InterDigital Inc (IDCC)

[hock1]

if I understand this correctly)
the shorts probably sold call contracts to protect their profits.
there are over 8500 november 33 call contracts out there.
then there will be an effort to close this stock under $33 today so those contracts will expire worthless and the contract sellers keep the premium they received for their sales without having to come up with the stock.
is that about right?

doctor d.... No, in this case the shorts more than likely bought the 33 calls as a way to cover an amount of shares (maybe 850,000) that they could not otherwise buy without a major spike in the stock. It is the writers (sellers) of the calls that are most likely "naked" and would benefit from the stock closing at 33 or under (keeping the premium). If this happens the writers (sellers) will not have to buy stock to deliver (to "the shorts"). If it does close above 33 and the writers are indeed naked, they will have to come up with as much as 850,000 shares. Hope this helps.