On Option symbols

Discussion in 'Options' started by riskaew, Dec 29, 2011.

  1. riskaew


    Hi all,

    I notice that for some options, Yahoo Finance lists two symbols for the same expiry date and strike price. For example, for the Jan-2012 call at strike $22.5, it has two symbols for it:



    It seems the one starts with "AIG2" is some old trade (a few weeks ago) so it probably should be ignored.. but I am curious in why it's listed separately and any insights will be greatly appreciated.

  2. rmorse

    rmorse ET Sponsor

    AIG and AIG2 have different contact descriptions.
    • aig.pdf
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  3. Anytime there are multiple symbols for the same expiry and strike, it's either due to an adjsutment in the underlying or it's bad Yahoo's data :)
  4. riskaew


    Thanks for the helpful replies! My interpretation is: in this case, because AIG issues warrants with its common shares (a change in the underlying), the Option Clearing Corporation (OCC) has to issue a new contract (AIG2) for the new situation as the original contract (AIG) is still valid.

    Let me know if I am mistaken and thanks again!
  5. rmorse

    rmorse ET Sponsor

    You might be backwards. The AIG2 represents the common with the warrant as the value existed before the distribution. So, the old AIG is renamed AIG2. AIG2 is not a "NEW" contract, but a renaming of the old AIG contacts. The regular AIG options after that date are the NEW contracts, and don't include the warrants.
  6. riskaew


    Thank you very much Robert!