$5 options on a $7.75 underlying: Jun14: Call $2.60/$2.80, Put $0.00/$0.15 Jul14: Call $2.60/$2.85, Put $0.00/$0.25 Oct14: Call $2.65/$2.90, Put $0.00/$0.05 Jan15: Call $2.65/$2.90, Put $0.00/$0.25 What is the implication of essentially no extrinsic value across multiple expiries? FYI, I had no trouble filling a small lot of Jan15 calls at roughly halfway between the bid and ask.
No comments? Isn't it unusual for an option chain to show essentially zero theta? That's how I'm reading it.
1) ? .... ! ..... it could be a company that is the subject of a takeover. :eek: 2) The deferred months are trading the same as the front-month because there is no long-term "future" for those months. 3) They will all be de-listed when the merger/takeover is finalized.
I don't think it's a takeover target. There certainly isn't anything out there on the retail sites. (That might not mean much.) For what it's worth, the ATM strikes price higher in a predictable way as you go out in time. The ITM puts ($10) are similarly flat, like the ITM calls. I didn't put much $ into it, but I did buy the Jan15 ITM calls. I think the underlying is undervalued -- it's trading well below book value -- and momentum appears to be upward. I'm just concerned ("if it seems too good to be true . . .").
1) One or more of those quotes could be "stale". It's an inaccurate "snapshot". 2) The stock could be (HTB), i.e. hard-to-borrow, since the option is being bid below intrinsic value. :eek: 3) Listed options that have "large" differences between strike prices with respect to the price of the underlying can be "goofy and illiquid" sometimes.
http://www.optionistics.com/quotes/stock-option-chains?symbol=MIL The above are eod quotes only. Some very low theta at some of the strikes.
That website is calling MIL "Millipore Corporation", which MIL is most certainly not. I'm not saying the quotes are bad, but MIL is MFC Industrial, a commodity supply chain business, not a bioscience business.