I know next to nothing about options. Anyway, I'm scanning stocks mid-day (today) and PCAR shows up. I look at the options and notice a couple of things: 1. Odd strike prices. Is it normal to have a strike like $96.80? 2. So I focus on the Feb 19 $99.30 call since it has the most OI. It's moving up sharply, but what really puzzles me is these were trading as low as .65 and hung around .80 until about 10:00 AM. And this is after a news even a day or two before. How can a $90+ stock option with nearly a month to go trade so cheap? I looked at some other options around the same strike and they were all much higher, like $4+.
PCAR had a special dividend of $0.70 so all option prices were reduced by that amount. Standard options aren't priced this way. The 99.30 strike was the 100 strike (before adjustment) which was more than 10% OTM with about a month to go. Not too likely for most stocks to rise that much in such a short period of time which is why the option was priced below $1.