ZAGG Incorporated (ZAGG)

[P2O I'm from MO]

The only problem is what if you open the option for a nickel and I buy it.

Umm, the problem is you would SELL the option. The party hedging the
short would BUY the option. By purchasing the call option the party
hedging the short is protected from upside price appreciation of the
shorted stock.

For example:

http://www.m-x.ca/f_publications_en/options_strat3_en.pdf