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Re: rob

By: robweis in IDCC | Recommend this post (0)
Thu, 12 Jan 12 2:26 AM | 343 view(s)
Boardmark this board | InterDigital Communications
Msg. 44265 of 48237
(This msg. is a reply to 44263 by teecee)

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So, if I understand:

One sells a naked call at say $60.

IDCC sells itself for $5B ($100 a share).

The naked call seller would need to go to the market to get shares at $95 to deliver to the call owner at $60, netting -$35/share.

Is that right? If so, Holy Crap!


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The above is a reply to the following message:
Re: rob
By: teecee
in IDCC
Thu, 12 Jan 12 12:31 AM
Msg. 44263 of 48237

yes...they can and they do....and there is very little one can do to hedge out "event risk"


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