InterDigital Inc (IDCC)

[Dave Davis]

EconEli re: Options

I agree with your strategy. FWIW I am on the sidelines with my equity position, but I am protecting myself from a surprise settlement announcement with options. I have a bunch of March 25's, 30's and 35's (purchased the day before the announcement of the trial delay), and a bunch of September 25's.

My guess is that IDCC will drift a little lower due to world events and the economy. Also, I have been in IDCC for about 3 years, and in that time the conference calls, more often than not, have been dissapointments. I may be proven wrong, butI am gambling that this will be the case on February 11. Mickey's dissapointment is also a little bearish for me.

The worst case scenario for us option players is if IDCC drifts a little bit higher but not high enough to reach our strike prices. Then we will lose our option money and we will have to buy back in at a higher price. However, I believe that this is the least likely scenario. If the stock is going to go up, it is going to go way up, not just a little bit.

I am hoping to buy back in around $9.50. I guess I am one of the 'weak hands' that are disparaged so much around here. Nevertheless, I am fairly confident, based on all I read here (JK's discoveries in Dallas, etc.) that IDCC will prevail over Ericcsonn and in the long run we will all profit handsomely.

Peace.

Dave Davis