Can anyone explain the huge price differences between the Oct05 and Nov05 options. I realize a month is a long period of time, but the price differences between Oct05 and Nov05 are pretty big compared to all other months. I understand the big merger with Symc and Vert, but I believe these Oct options are priced pretty cheap. Right now I am consider the Oct05 20 call priced for about 1.15. Anyone have an opinion on this option? or the big price differences?
My best guess is that that nov option has something embedded in it that makes it prices way off the vol surface, either it is related to a special dividend, or the contract does not deliver the usual 100 shares.I've seen it once in the QQQQ when MSFT declared that huge div. Unless you know the reason for it, I wouldn't assume a layup by arbing it vs. another month.
If you know about the merger then you should also know that Nov options are adjusted (i.e. non-standard) options.