Orange County

Knickerbocker Showdown: Trading of L.L. Knickerbocker Co.’s stock appears headed for more volatility this week as traders scramble to recover from ill-fated bets the stock would fall. So-called short-sellers, traders who borrow and sell stocks they believe are overpriced, had been betting big that the stock of the Orange County maker of collectible dolls and other products would tumble. This week, several brokerages that lent short-sellers the stock are expected to demand that traders repay some of the company’s shares. That would put pressure on short-sellers to buy stock in the open market to cover their positions, which could drive the price even higher. Knickerbocker has seen its stock surge from about $4 in mid-June to a high of $48.25 in early August.