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I didn;t know about large short position, that WOULD explain the call/puts open interest discrepancy!

Originally Posted by Biggy

I see what you're saying how the discrepancy in the open interest between calls and puts is high, so it looks like a set up for the smart money...BUT

because the stock is pretty heavily shorted, don't you think all the interest in the calls is to cover their shorts if the stock goes higher... kind of like your insurance calls you wanted to write on INTC...

I agree you cannot bank on this stock based on earnings, but this is also a small and somewhat undiscovered stock, it gets very little press, not one major NY investment house covers this stock - thats where the information advantage is. As an individual investor, you can get an information advantage, and you don't need to be skeptical. With a ticker like "PLAY" and the markets they are involved with - the video ipod chips (which everyone knows just had a record quarter), the secondary display screens they are working with Microsoft on and adding to the outside of laptops (the most visible change to the laptop in years), this stock once it gains some steam can easily be marketed and touted to investors. It trades at a pretty cheap multiple and the fundamentals are there. It all makes great selling points to investors.

I'm sensing a short squeeze. I'll see how it plays out throughout the next week and see if I want to hold it on earnings day, but this is a great pick thru the long term and is looking pretty solid. Lots of stocks report great earnings and go down on earnings day, no question about it, but this is a stock to keep an eye on.