Can someone tell me why XTO Energy options that expire in basically a week are selling for pissloads http://finance.yahoo.com/q/op?s=XTO Example: http://finance.yahoo.com/q?s=XTJBK.X
XTO had a 5:4 split and the number of shares per adjusted contract was increased to 125. Standard 100 share contracts have a root symbol of XTO Adjusted XTO contracts have a root symbol of XTJ From your Yahoo link, XTO closed at $51.27 and an adj. Feb 45 call goes for $19.40 That means if you buy that call, you'll get 125 shares at $45 for a total cost of $6,440 ($45 + $19.40) 125 shares @ today's close is worth $6,409 Doesn't look like such a good deal to me (g)