Why many symbols for the same strike?

Discussion in 'Options' started by North Pesos, Jan 13, 2004.

  1. I would like to know why the same stock with the same strike and expiration date could have many symbols for the same kind of contract, an example is UPS CALL JAN04 @ 70$, you will have:


    what is the difference between them?
  2. You'd have to check the contract specs.

    A lot of times you'll have multiple symbols for what looks like the same month/strike combo but the contract specs are different because it reflects a special case condition (maybe they changed the delivery quantity to 150 shares because of a split or there's a merger/spinoff involved and the option reflects the special conditions of that - e.g., some cash delivery, delivery of variable shares or shares of more than just the underlying stock, etc.).

    All option contracts are not a simple 100 shares delivery - you should always verify the specs of the contract before you trade it - i.e., always know what you're trading before you trade it.