TINY holds around 1.6M shares of SZYM.
On December 31, 2012, SZYM was trading at $7.86, now it's trading at $11.86.
Which means the net value of TINY has increased $4 * 1.6M = $6.4M
If SZYM goes to $15(very likely based on the chart), then the net value of TINY will increase
$7.14 * 1.6M = $11.4M, more than 10% increase on the net value and will increase the net value to
$4.5 per share.
This along should take TINY to $3.5 level.
Not to mention the D-Wave good news for TINY.
Actually, the actual situation is a little bit different. (Everything you (ronmalenfant) wrote was correct, but there was more information in the 10Q. Look at page 56 of the 10Q, "Subsequent Events".")
The wrote 300 more 7.50 calls with an April strike in April, and purchased puts with the proceeds. The puts expired worthless, and the shares covered by the April calls (all 50,000 shares, including the 200 contracts that were previously written) were called away at 7.50.
They also sold another 108,000 shares on the open market in late April and May for an avg sales price of 8.44.
They may have bought back some of the June options. There is only an open interest of 4400 contacts or so in the June 10 calls right now, which would seem to indicate that they must have bought back some of their 5400 contracts, but it is not impossible that they originally sold the contracts in a private transaction that is not reflected on the options market. If they did buy back some of the contracts, they may have bought them back at a loss, but that is not possible to say yet. Any that they buy back now will definitely be at a loss, unless SZYM drops back to 10 or below.
Although they are in the black for sure with their SZYM investment (they have already recovered their investment and then some), I think they have been shortsighted about their handling of the position. Solazyme is in a remarkably good position and has demonstrated that they have excellent management, and although there are no guarantees, I would not be surprised to see SZYM as a 4 or 5 billion company in market cap in two years as their sales ramp up at an astonishing rate. That would mean a stock price of over 50, and therefore I wish TINY had kept the lion's share of the shares they had at the IPO. As it is, they have sold off or pledged more than half of their shares already for an average price I would ball park at around $11.