Replies to post #35215 on Zion Oil & Gas Inc (ZNOG)

[Porgie Tirebiter]

It's hard to say. When the Jan 2021s were issued in Sept. 2018 the stock was trading around $1.50 or so?

It looks like the highest those calls traded were $1.49. If people sold calls against their shares back then their 'hedge' has pretty much played out and maybe they just want to cover and close out their position. I can't see any other incentive to bid on those calls. Well, except for straight up gambling that is...

[Porgie Tirebiter]

Hedge funds don't necessarily own the underlying shares when they write calls. If you qualify you can write naked calls. But you would still have to buy them back to close the position.