Re: Options. Some other thoughts to those who might buy out of the money calls. (example Jun or Jun 06 / 25's. If the goal is to own the stock, my broker says, "ask yourself if you think you can get in before the stock price rises above the strike price, plus the price of the option". If you think you can buy at less than the strike price, don't buy the calls, just place a buy order for the stock when you think the time is right.
From this advise, I have found that a thinly traded stock can be hard to buy in the event of great news. IDCC is not thinly traded. Hence, my broker would say that you could get in at less than $25 + cost of option, even on news of settlement with NOK. (he would say it is not going to jump $10 on news in any one day)
In other words, why spend $1.70 per share to buy Jan 06 25's when you could probably buy the stock at less than $26.70 per share. Of course this goes out the window if you are counting on the stock rising before the strike date and your only goal is to sell the option at a profit and not own the stock.
If you think the price of IDCC will stay between $17 -20 until news, then you can probably buy the stock at less than $26.70. If you think the stock will approach $25 before June or Jan 06, with no news, then buy the option.
Another point: If you aren't going to buy at least 1000 contracts, my broker would say that the gain is not worth the risk. Wait for news and then buy.
So, if our stock is really going to be worth $50 - 100, why gamble money on options when you can probably get in at less than $30., unless you can really afford to gamble alot.
Last thought: If you think IDCC will jump 25-50 points in a few hours on news of a 2g settlement or 2g arb. award with NOK, then options are the best way to control a lot of stock for little money. But, be sure you can afford to lose the money.
FWIW
Ghors
News 
Market Data 
Discover 
AI
