ZAGG Incorporated (ZAGG)

[moe_the_gyp01]

Zagg Call open interest through FEB 2012...


Aug 23,212
Sep 23,319
Oct 21,253
Nov 24,555
Dec 23,135
Jan 21,756
Feb 1,295

Total 138,525
Notional x 100

13,852,500 shares notional

There 138,525 call open interest representing a notional position of 13 million shares. More than enough to cover the 11 or so million shares short. Typical of any professional or seasoned retail trader to purchase a call at least equal to the number of shares short as upside protection.

I do it, professional traders do it and no doubt hedge fund managers do it or they're out on their arse.

No boogie men, just smart traders waiting out the eventual haircut. And if no haircut, no skin of their backs as they have call options as insurance against a FED call.

AlanC, for you to respond.