Option Trading Articles: [TheOptionClub.com] Re: Option price questions

Tuesday, June 30, 2009

[TheOptionClub.com] Re: Option price questions

Right,

These odd balls usually mean an adjustment for acquisition or divesting of a publicly held company or a stock split.

John is right, avoid them.

Jeff W
--- In OptionClub@yahoogroups.com, Randy Harmelink <rharmelink@...> wrote:
>
> I'm no expert, but in case no one comes up with a better answer, I sometimes
> use this link to look up option symbol definitions when I run into such
> duplicates:
>
> http://www.theocc.com/market/infomemos/info_memos_form.jsp
>
> When I look up KZI there (one of the SIRI option prefixes), I find this
> document:
>
> http://www.optionsclearing.com/market/infomemos/2008/jul/24704.pdf
>
> If I'm interpreting it correctly, it means the KZI contract controls 460
> shares instead of the normal 100.
>
> When I look up UCW there (one of the DIS option prefixes), I find this
> document:
>
> http://www.optionsclearing.com/market/infomemos/2007/jun/23184.pdf
>
> Again, if I interpret it correctly, it means each UCW contract deliverable
> is:
>
> -- 100 shares DIS stock
> -- 7 shares CDL stock
> -- $4.06 in cash
>
> I usually avoid those contracts with the "special" conditions and just us
> the regular ones.
>
> On Mon, Jun 29, 2009 at 4:11 PM, junior943 <junior943@...> wrote:
>
> > I have been checking out the option scene the past few weeks and would like
> > to know why some options have two of the same strike prices. For example:
> >
> > SIRI Jan.2010 has two $5.00, $7.50.
> > DIS Jan.2010 has two $25.00, $30.00.
> >
> > Thanks in advance for the answers.
> >
> > John
> >
>

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