Anything you want to know about options go to www.cboe.com
For contract adjustments click on Trading Tools / Contract Adjustments and then do a search for your symbol.
Bill
Hi Bill,
Thank’s for the information. When I looked at the numbers John Hudgens had posted, it really looked like a good deal with a positive one month return no matter what happened even down to a price as low as $55.50 with the stock closing at $80.16 yesterday.
I checked with my broker and found that the YOBAP option is for 69 shares and $3,418. That means the call had an intrinsic value at yesterday’s close of $8949.04, not the $8,016 I would have expected. The RIGAP $80 call option is what I think of as a standard option with no cash component and a call on 100 shares.
The return calculations on the YOBAP option spread become more complicated because of the cash component and lesser number of shares.. It appears that at any price higher $66.50 the YOBAP option will be called away.
Dan (dan2fl)
From: ConservativeOptionS
Sent: Thursday, December 10, 2009 8:14 AM
To: ConservativeOptionS
Subject: Re: [ConservativeOption
Check to see if there have been any corporate actions, cash dividends, etc.
Maybe its 100 shares PLUS 26 dollars in cash for a deliverable contract in assignment.
Stay away from those options. They're usually more illiquid and harder to price.
Bill
From: "Dan" <delta1@cfl.rr.
Date: Thu, 10 Dec 2009 07:45:18 -0500
To: <ConservativeOptionS
Subject: RE: [ConservativeOption
Hi John,
Perhaps you can help. I went to Yahoo and looked up the symbols for a January 2010 call on Transocean (RIG).
I found the following symbols and prices.
RIGAP $3.72
YHOAP $0.09
YOBAP $9.65
Do you know what causes the great difference in prices between the three options, all supposedly call options with an $80 strike price all on the same company?
Dan (dan2fl)
From: ConservativeOptionS
Sent: Wednesday, December 09, 2009 10:09 AM
To: ConservativeOptionS
Subject: [ConservativeOption
| Had to brag -- but only of the blog -- Transocean is a great company BTO VOIAM RIG Jan 11 65 @ $21.40 STO YOBAP RIG Jan 10 80 @ $9.50 for a 39 day yield if it works, may be my best ever 44.2% in 39 days John |
No comments:
Post a Comment