RIG options

[traderTX]

hey guys I know I'm new to options trading....but I was going through my list of stocks I like to trade and noticed RIG.....the odd thing was (to me anyway) the underlying was at 155 and the 140 calls were trading at 4.6.....what am I missing?

 

[El OchoCinco]

There are two series of MAY calls indicating a possible adjustment or other event. I would go to the OCC website and look up RIG and look for news about adjusted options.

The regular MAY 140 calls are trading at 17.30.

 

[traderTX]

thank you optionscoach.....can you give me a brief explanation of adjusted options? I'm a complete noob in options trading

 

[El OchoCinco]

Looks like there was some merger or something and the options do not simply represent 100 shares of stock anymore. Looks like they represent some shares of RIG and cash payout. I only looked at it quickly:

http://www.optionsclearing.com/market/infomemos/2007/nov/23854.pdf