What are the implications of this option chain?

J

jimmyjazz

$5 options on a $7.75 underlying:

Jun14: Call $2.60/$2.80, Put $0.00/$0.15
Jul14: Call $2.60/$2.85, Put $0.00/$0.25
Oct14: Call $2.65/$2.90, Put $0.00/$0.05
Jan15: Call $2.65/$2.90, Put $0.00/$0.25

What is the implication of essentially no extrinsic value across multiple expiries? FYI, I had no trouble filling a small lot of Jan15 calls at roughly halfway between the bid and ask.
 
jimmyjazz said:
----essentially no extrinsic value across multiple expiries?
More...
1) ? .... ! ..... it could be a company that is the subject of a takeover. :eek:
2) The deferred months are trading the same as the front-month because there is no long-term "future" for those months. :)
3) They will all be de-listed when the merger/takeover is finalized. :cool:
 
I don't think it's a takeover target. There certainly isn't anything out there on the retail sites. (That might not mean much.)

For what it's worth, the ATM strikes price higher in a predictable way as you go out in time. The ITM puts ($10) are similarly flat, like the ITM calls.

I didn't put much $ into it, but I did buy the Jan15 ITM calls. I think the underlying is undervalued -- it's trading well below book value -- and momentum appears to be upward. I'm just concerned ("if it seems too good to be true . . .").
 
jimmyjazz said:
----$5 options....
----$7.75 underlying:
----What is the implication....
More...
1) One or more of those quotes could be "stale". It's an inaccurate "snapshot". :cool:
2) The stock could be (HTB), i.e. hard-to-borrow, since the option is being bid below intrinsic value. :eek:
3) Listed options that have "large" differences between strike prices with respect to the price of the underlying can be "goofy and illiquid" sometimes. :(
 
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