Mispriced long calls

D

DevGoneRogue

I'm relatively new to options, but I've been value investing in a stock for a while right now, and I'm toying with buying options for it's next 10-K. This question isn't related.

Let's call the stock ABC. ABC is currently trading at ~$25.
The Oct 19. $12.5 strike currently costs $8.10 to buy, how is this possible? How common is this? Is the quote just incorrect because that is the price they were last traded at and nobody is buying them anymore?
 
There could be a dividend coming, or the option could represent something other than 100 shares of the company (maybe there's going to be a spinoff), or it's a very thinly traded option and the trade price you see could be days or weeks old. If you tell us the real ticker, we could help more.
 
Quote from DevGoneRogue:

The ticker is CRAY
More...

I see the Oct 12.5 calls trading at 11.20-12.20 with the stock at 24. Could you have been looking at an old last price?
 
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