Distribution event (Sym: BIP) - anyone help interpret this?

Discussion in 'Options' started by d0rian, Apr 1, 2020.

  1. d0rian

    d0rian

    I own a handful of Brookfield Infrastructure Partners (BIP) Calls and Puts - some ITM some not. There's a corporate action that I'm having trouble wrapping my mind around (link to OCC press release; pasted image of relevant part below.)

    Cliff's: Trying to understand what this means, if anything, for me.

    I've held options through symbol changes, splits, and the like, but not through something like this. Just want to know:
    1. If I'm being disadvantaged in any respect, or
    2. Whether there's any bear trap I need to avoid re: exercise or closing of these positions?
    (A thought I had: is there any corollary here to the dividend scenario where DITM Call holders can screw up by not exercising early when a dividend > time value remaining?)

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