These positions tend to be "hairy" companies that don't fit neatly into a traditional sector, or face issues that take a lot of time and legwork to understand. One such company that Hendrickson likes now is Rambus (RMBS). The memory-technology licensing firm is stuck in a long legal dispute over whether the big chip makers have used its technology without paying up. After reading thousands of pages of legal documents, Hendrickson sees big upside and enough support to limit downside in the stock. "We started buying the stock at 21, were still buying at 5, and it's at 16 now. We think the stock could go to 40 given what they are owed in royalties and settlements. Even if there are further legal delays, we think their low-power/high-bandwidth chip technology will see adoption [by smartphone makers] next year," justifying the current price. And a legal loss would, if nothing else, cut the company's big legal bills.

leagal issues with manufacturing

He also told us he likes Rambus (RMBS) in the space.

Mad About Options: First and Goal, Rambus: The Mad About Options crew discusses FastMoney's take on Rambus and offers options strategies for traders and investors.
Click here to watch the video.

From a recent Mad Money show:"Another disappointing tech stock I don't want to have anything to do with."

I’m seeing unusual activity in Rambus (RMBS), says Jon Najarian. Options are moving like the stock could explode to the upside.

From a recent Mad Money show:

"No, no. You're killing me. I don't want to stick with any tech names right now. "

Options traders are buying 21 calls, explains Najarian, out to November. I’d keep an eye on this stock over the next several months.

There's no theme beyond the iPhone here. The only big increases come from a periodic takeover or from a lawsuit victory, a la Tessera (TSRA) or a Rambus (RMBS). Those feel like short-squeezes anyway.

leading chip interface technology

Their tech is getting out dated, too many memory chip companies.

NOT SURE LOST 50%

was money maker when i bought it

essentially a litigator's dream stock that does well as long as patents are defended vigorously; based on good technology, but really driven by success in the courtroom, as they manufacture no product