Replies to post #21885 on InterDigital Inc (IDCC)

[Jean-Michel RIOND]

Teecee, I've been selling puts and making money since last year. Someone must have bought them. Of course there are shorts using options. And I'm always astonished that people buy in the money with a strike 2 or 3 bucks lower than the share price. But does that have any effect on the share price ? I doubt it.

[mickeybritt]

Teecee

Calls being sold doesn't have a thing to do with the amount of stock short. The amount of stock short is actual shares sold and not owned, thats why it is called short. Now for either naked calls or covered calls that is different as covered calls are not short on the call side, but a naked call is a short but not classified as a short of the actual stock. A short of the stock sold the stock and hopes to buy cheaper a short on the call sells the naked call and hopes the stock doesn't go over the strike price he sold the stock at and pocketed the premium. The call writter actually is probably going to make more money than the naked short is as the writter takes a premium in while the short seller is only getting market price, and the call writter can go into the open market and buy and not have to pay the premium of the call, so the writter has more ways to cover than does the short seller of the stock.

Mickey

[EconEli]

No teecee, it is you that are confused. However I won't get into a parsing war with you. Suffice to say, if you want garbled, ill-informed techno-mumbo-jumbo posts there are a few people whose posts you should be reading instead of mine.