InterDigital Inc (IDCC)

[gabeh]

How do you come up with an $8 million cost or loss?

If the stock price at expiry is $41, it costs $1 per share or $100 per call or $200,000 total as the shares can be bought for $41 and sold for $40. In effect the option will be priced at around $1 so again, the "loss" for the writers is the difference between the sp and the strike price.

Besides, the writers probably got $10 plus per share or $1000 per call.