May have screwed myself here. Usually, what seems to good to be true is...
Pursuant to Article VI, Section 11 of OCC's By-Laws, all SNC options outstanding as of Friday, October 29, 1999, shall be adjusted as follows:
The SNC options will be adjusted to require the per-contract delivery or receipt of the following: (A) 100 shares of Snyder Communications, Inc. - SNC ("SNC"); plus (B) 25 shares of Snyder Communications, Inc. - Circle.com ("CIRC"). The SNC option symbol will change to SNW.
The adjusted SNU options will be further adjusted to require the delivery or receipt of the following: (A) 100 shares of Snyder Communications, Inc. - SNC ("SNC"); plus (B) 25 shares of Snyder Communications, Inc. - Circle.com ("CIRC"); plus (C) 33 shares of Ventive Health, Inc. ("VTIV"), plus (D) $3.08 cash. The SNU option symbol will remain SNU.
Premiums and strike-price amounts for the adjusted SNW and SNU options will continue to be calculated on the basis of a multiplier of 100, i.e., for premium and strike-price extensions, 1.00 will equal $100. Strike prices will remain the same. [Any FLEX series that may exist will be adjusted in a similar manner to the standardized option.]
Since I bought 800 shares of SNC today and sold 8 SNU Nov 15ths... it looks like I've obligated myself to deliver 800 shares of SNC + 200 Shares of CIRC and 264 Shares of VTIV.
Now the trick is... I have no real clue how to determine at what price these options are now in the money. Though I believe this may be the formula at todays closing ASK prices
SNC(13.8125) + CIRC (.25)(13.125) + VTIV (.33)(7.25) =
13.8125 + 3.28125 + 2.3925 = 19.48625
in other words, at todays closing prices the November 15 option I sold at 4 3/8 is likely 4.50 in the money?
Damn, damn, damn..... and E*trade is still telling me I'm okay... |
