InterDigital Inc (IDCC)

[hock1]

With all the theories about the nature and purpose of massive call trades last Friday, very few if any, (including myself) have posited any theories about how the shorts may have employed these trades for the purpose of mitigating the sorry state they have put themselves in. It has become abundantly clear to them by now that they are shoveling excrement against the tide. So, I am now more inclined to think that these trades somehow involved them. It is possible that they may have found other like-minded miscreants who are willing to take on this over-sized short position at this level.

While it is impossible to tell, because shorts are shielded from the light of day, the long-standing short position, I think most would agree, has an average basis around the low $20's. Due to some serious miscalculations on their part, they are now in serious trouble and know that there is no way to cover their position legitimately. If they were able to convince others to "take over' their position, options may be a way to do it.