info on what option is (newbie)

Discussion in 'Options' started by ezracolbert, Jan 6, 2006.

  1. lots of options are not straight 100 share, but something else, usually not well explained, if at all. Is there a place that explains what is actually in the diff contracts ?
  2. MTE


    Are you talking about adjusted options!? Those options become non-standard ones (not 100 shares per contract) due to corporate actions, such as mergers and takeovers.
    The contracts are adjusted according to the terms of the deal.
  3. plugger


    Yes, they are called "noptions" (as in, 'not options'). Very confusing. Way too complicated for this forum.
  4. if you look at S jan 06 calls, you find 3 diff options at strike = 10
    -NXSAB Jan 06 10.0000 19.40
    -SAB Jan 06 10.0000 13.50
    -YVUAB Jan 06 10.0000 1.85

    Fidelity tells me the following
    -NXSAB S JAN 2006 10.0000 CALL (CONTRACT_SIZE=100, 126 SHARES OF S, $1

    -SAB S JAN 2006 10.0000 CALL

    -YVUAB S JAN 2006 10.0000 CALL (CONTRACT_SIZE=100, 50 SHARES OF FON)

    The SAB seems straight enough, but the other two are a bit cryptic.

    So, two ?s
    is there a place where these cryptic descriptions are explained in more detail ?

    Is there software that lets you download only option chains that are simple , like the SAB (eg, optiongrid from butler software will download them all)
    I would like to download all S&P options so I can put the data in excel and run my own analysis
  5. MTE


    Yes, you're right those options are adjusted ones. Go to the link below to read the adjustment note (you just type in the stock symbol in the search box and it will give you the adjustment notes that explain the deal):

    Once again, the only reason those options are non-standard is because of a corporate action that will take place. The majority of stocks have normal, i.e. standard options as only a relatively small number go through some corporate action.