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

Monday, June 29, 2009

Re: [TheOptionClub.com] Option price questions

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@yahoo.com> 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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