November 30, 1998
The Gap, Inc. ("GPS/LGS/ZGS & adj. VWS/LYP") 3-for-2 Stock Split
Ex-Distribution Date: December 1, 1998
The Gap, Inc. ("GPS/LGS/ZGS & adj. VWS/LYP") has announced a 3-for-2 common
stock split, with a payable date of November 30, 1998, to shareholders of
record November 11, 1998. The ex-date for the split is Tuesday, December 1,
1998.
Contract Adjustment
Pursuant to OCC rules (Article VI, Section 11), all outstanding GPS/LGS/ZGS
& adj. VWS/LYP option series will be adjusted to reflect this 3-for-2 stock
split on Tuesday, December 1, 1998, at 8:30 A.M. Chicago time. The exercise
price of each outstanding GPS/LGS/ZGS series will be reduced by dividing
the existing exercise price by the split ratio (1.5) and rounding to the
nearest eighth of a point, and the option symbol will be changed to GZP,
LXB or ZVG, as the case may be. The contract unit of each adjusted
GZP/LXB/ZVG series will be increased to 150 shares, and the contract
multiplier will change to 150, i.e., 1 point of premium or strike price
will equal $150. Adjusted exercise prices are shown below.
For each previously adjusted VWS and LYP option contract there will be no
additional contracts issued and the strike prices will be divided by the
split ratio (1.5) and rounded to the nearest eighth of a point. The symbols
will remain VWS and LYP, respectively. The contract unit of each
further-adjusted VWS and LYP series will be 225 GPS shares; and the
contract multiplier will change to 225, i.e., 1 point of premium or strike
price will equal $225.
The adjustment will appear in the Daily Position Report of the clearing
member firms on the ex-date. After 8:30 A.M. Tuesday, December 1, 1998, all
trades, corrections and exercises must be submitted to the CBOE and OCC on
an adjusted basis.
Adjusted Exercise Prices
On Tuesday, December 1, 1998, the ex-distribution date, trading in
GPS/LGS/ZGS & adj. VWS/LYP series will be on an adjusted basis. At 8:30
A.M., Chicago time, an opening rotation will be effected with the following
adjustments:
EXISTING SERIES ADJUSTED SERIES*
(100 Shares) (150 Shares)
GPSLH Dec 40 Calls GZPLV Dec 26-5/8
GPSLI Dec 45 Calls GZPLF Dec 30
GPSLJ Dec 50 Calls GZPLW Dec 33-3/8
GPSLK Dec 55 Calls GZPLX Dec 36-5/8
GPSLL Dec 60 Calls GZPLH Dec 40
GPSLM Dec 65 Calls GZPLY Dec 43-3/8
GPSLN Dec 70 Calls GZPLZ Dec 46-5/8
GPSLO Dec 75 Calls GZPLJ Dec 50
GPSLP Dec 80 Calls GZPLQ Dec 53-3/8
GPSAG Jan 35 Calls GZPAT Jan 23-3/8
GPSAH Jan 40 Calls GZPAV Jan 26-5/8
GPSAI Jan 45 Calls GZPAF Jan 30
GPSAJ Jan 50 Calls GZPAW Jan 33-3/8
GPSAK Jan 55 Calls GZPAX Jan 36-5/8
GPSAL Jan 60 Calls GZPAH Jan 40
GPSAM Jan 65 Calls GZPAY Jan 43-3/8
GPSAN Jan 70 Calls GZPAZ Jan 46-5/8
GPSAO Jan 75 Calls GZPAJ Jan 50
GPSAP Jan 80 Calls GZPAQ Jan 53-3/8
GPSCI Mar 45 Calls GZPCF Mar 30
GPSCJ Mar 50 Calls GZPCW Mar 33-3/8
GPSCK Mar 55 Calls GZPCX Mar 36-5/8
GPSCL Mar 60 Calls GZPCH Mar 40
GPSCM Mar 65 Calls GZPCY Mar 43-3/8
GPSCN Mar 70 Calls GZPCZ Mar 46-5/8
GPSCO Mar 75 Calls GZPCJ Mar 50
GPSCP Mar 80 Calls GZPCQ Mar 53-3/8
GPSFJ Jun 50 Calls GZPFW Jun 33-3/8
GPSFK Jun 55 Calls GZPFX Jun 36-5/8
GPSFL Jun 60 Calls GZPFH Jun 40
GPSFM Jun 65 Calls GZPFY Jun 43-3/8
GPSFN Jun 70 Calls GZPFZ Jun 46-5/8
GPSFO Jun 75 Calls GZPFJ Jun 50
GPSFP Jun 80 Calls GZPFQ Jun 53-3/8
EXISTING SERIES ADJUSTED SERIES*
(100 Shares) (150 Shares)
LGSAF Jan 30 Calls 2000 LEAPS LXBAD Jan 20
LGSAG Jan 35 Calls LXBAT Jan 23-3/8
LGSAH Jan 40 Calls LXBAV Jan 26-5/8
LGSAI Jan 45 Calls LXBAF Jan 30
LGSAJ Jan 50 Calls LXBAW Jan 33-3/8
LGSAK Jan 55 Calls LXBAX Jan 36-5/8
LGSAL Jan 60 Calls LXBAH Jan 40
LGSAM Jan 65 Calls LXBAY Jan 43-3/8
LGSAN Jan 70 Calls LXBAZ Jan 46-5/8
LGSAO Jan 75 Calls LXBAJ Jan 50
ZGSAK Jan 55 Calls 2001 LEAPS ZVGAX Jan 36-5/8
ZGSAL Jan 60 Calls ZVGAH Jan 40
ZGSAM Jan 65 Calls ZVGAY Jan 43-3/8
ZGSAN Jan 70 Calls ZVGAZ Jan 46-5/8
ZGSAO Jan 75 Calls ZVGAJ Jan 50
GPSXH Dec 40 Puts GZPXV Dec 26-5/8
GPSXI Dec 45 Puts GZPXF Dec 30
GPSXJ Dec 50 Puts GZPXW Dec 33-3/8
GPSXK Dec 55 Puts GZPXX Dec 36-5/8
GPSXL Dec 60 Puts GZPXH Dec 40
GPSXM Dec 65 Puts GZPXY Dec 43-3/8
GPSXN Dec 70 Puts GZPXZ Dec 46-5/8
GPSXO Dec 75 Puts GZPXJ Dec 50
GPSXP Dec 80 Puts GZPXQ Dec 53-3/8
GPSMG Jan 35 Puts GZPMT Jan 23-3/8
GPSMH Jan 40 Puts GZPMV Jan 26-5/8
GPSMI Jan 45 Puts GZPMF Jan 30
GPSMJ Jan 50 Puts GZPMW Jan 33-3/8
GPSMK Jan 55 Puts GZPMX Jan 36-5/8
GPSML Jan 60 Puts GZPMH Jan 40
GPSMM Jan 65 Puts GZPMY Jan 43-3/8
GPSMN Jan 70 Puts GZPMZ Jan 46-5/8
GPSMO Jan 75 Puts GZPMJ Jan 50
GPSMP Jan 80 Puts GZPMQ Jan 53-3/8
GPSOI Mar 45 Puts GZPOF Mar 30
GPSOJ Mar 50 Puts GZPOW Mar 33-3/8
GPSOK Mar 55 Puts GZPOX Mar 36-5/8
GPSOL Mar 60 Puts GZPOH Mar 40
GPSOM Mar 65 Puts GZPOY Mar 43-3/8
GPSON Mar 70 Puts GZPOZ Mar 46-5/8
GPSOO Mar 75 Puts GZPOJ Mar 50
GPSOP Mar 80 Puts GZPOQ Mar 53-3/8
EXISTING SERIES ADJUSTED SERIES*
(100 Shares) (150 Shares)
GPSRJ Jun 50 Calls GZPRW Jun 33-3/8
GPSRK Jun 55 Puts GZPRX Jun 36-5/8
GPSRL Jun 60 Puts GZPRH Jun 40
GPSRM Jun 65 Puts GZPRY Jun 43-3/8
GPSRN Jun 70 Puts GZPRZ Jun 46-5/8
GPSRO Jun 75 Puts GZPRJ Jun 50
GPSRP Jun 80 Puts GZPRQ Jun 53-3/8
EXISTING SERIES ADJUSTED SERIES*
(100 Shares) (150 Shares)
LGSMF Jan 30 Puts 2000 LEAPS LXBMD Jan 20
LGSMG Jan 35 Puts LXBMT Jan 23-3/8
LGSMH Jan 40 Puts LXBMV Jan 26-5/8
LGSMI Jan 45 Puts LXBMF Jan 30
LGSMJ Jan 50 Puts LXBMW Jan 33-3/8
LGSMK Jan 55 Puts LXBMX Jan 36-5/8
LGSML Jan 60 Puts LXBMH Jan 40
LGSMM Jan 65 Puts LXBMY Jan 43-3/8
LGSMN Jan 70 Puts LXBMZ Jan 46-5/8
LGSMO Jan 75 Puts LXBMJ Jan 50
ZGSMK Jan 55 Puts 2001 LEAPS ZVGMX Jan 36-5/8
ZGSML Jan 60 Puts ZVGMH Jan 40
ZGSMM Jan 65 Puts ZVGMY Jan 43-3/8
ZGSMN Jan 70 Puts ZVGMZ Jan 46-5/8
ZGSMO Jan 75 Puts ZVGMJ Jan 50
EXISTING SERIES ADJUSTED SERIES*
(150 Shares) (225 Shares)
VWSAU Jan 16-5/8 Calls 1999 LEAPS VWSAA Jan 11-1/8
VWSAD Jan 20 Calls VWSAB Jan 13-3/8
VWSAW Jan 23-3/8 Calls VWSAC Jan 15-5/8
VWSAX Jan 26-5/8 Calls VWSAR Jan 17-3/4
VWSAF Jan 30 Calls VWSAD Jan 20
VWSAY Jan 33-3/8 Calls VWSAS Jan 22-1/4
VWSAZ Jan 36-5/8 Calls VWSAU Jan 24-3/8
VWSAH Jan 40 Calls VWSAV Jan 26-5/8
LYPAD Jan 20 Calls 2000 LEAPS LYPAB Jan 13-3/8
LYPAW Jan 23-3/8 Calls LYPAC Jan 15-5/8
LYPAX Jan 26-5/8 Calls LYPAR Jan 17-3/4
LYPAF Jan 30 Calls LYPAD Jan 20
LYPAY Jan 33-3/8 Calls LYPAS Jan 22-1/4
LYPAZ Jan 36-5/8 Calls LYPAU Jan 24-3/8
LYPAH Jan 40 Calls LYPAV Jan 26-5/8
EXISTING SERIES ADJUSTED SERIES*
(150 Shares) (225 Shares)
VWSMU Jan 16-5/8 Puts 1999 LEAPS VWSMA Jan 11-1/8
VWSMD Jan 20 Puts VWSMB Jan 13-3/8
VWSMW Jan 23-3/8 Puts VWSMC Jan 15-5/8
VWSMX Jan 26-5/8 Puts VWSMR Jan 17-3/4
VWSMF Jan 30 Puts VWSMD Jan 20
VWSMY Jan 33-3/8 Puts VWSMS Jan 22-1/4
VWSMZ Jan 36-5/8 Puts VWSMU Jan 24-3/8
VWSMH Jan 40 Puts VWSMV Jan 26-5/8
LYPMD Jan 20 Puts 2000 LEAPS LYPMB Jan 13-3/8
LYPMW Jan 23-3/8 Puts LYPMC Jan 15-5/8
LYPMX Jan 26-5/8 Puts LYPMR Jan 17-3/4
LYPMF Jan 30 Puts LYPMD Jan 20
LYPMY Jan 33-3/8 Puts LYPMS Jan 22-1/4
LYPMZ Jan 36-5/8 Puts LYPMU Jan 24-3/8
LYPMH Jan 40 Puts LYPMV Jan 26-5/8
Any additional GPS/LGS/ZGS & adj. VWS/LYP series that are added prior to
the ex-date will also be adjusted in the manner described above.
. Some series have non-standard price symbols with respect to the OPRA
exercise price symbol format. Also note that the option symbol for the
adjusted series will be GZP, LXB, ZVG, VWS or LYP, as the case may be, and
that A (11-1/8), B (13-3/8), C (15-5/8), R (17-3/4), S (22-1/4), T
(23-3/8), U (24-3/8), V (26-5/8), W (33-3/8), X (36-5/8), Y (43-3/8), Z
(46-5/8), and Q (53-3/8) are non-standard striking symbols (prices).
New Unadjusted Series
To facilitate the maintenance of a fair and orderly market in The Gap, Inc.
options, new GPS series with a contract unit of 100 shares will be
introduced on Thursday, December 3, 1998. The GPS series will be added for
December, January, March, and June expirations at exercise prices nearest
the money, and will use the standard OPRA price symbols. LEAPS on The Gap,
Inc. will also be introduced on Thursday, December 3, 1998 and will use the
standard OPRA price symbols and standard security symbols of LGS and ZGS.
GTC Order Conversion
On Monday, November 30, 1998, immediately after the CBOE close, the system
will convert or cancel all resting orders in the GPS/LGS/ZGS & adj. VWS/LYP
order book. If your firm has requested, all EBook orders (phone, wire, and
electronic) and all ORS orders residing outside the book (booth or crowd
routed) will be converted reflecting the adjustments. If your firm has
requested, all EBook orders and ORS orders residing outside of the book
will be canceled. If your firm receives EBook CXL drops, the CXL confirms
will print at your booth at 3:15 p.m. ORS CXLs will also be transmitted
electronically to your branches.
Immediately after the close, the book staff will return a final written
report listing the orders that are converted or canceled to all firms. If
converted, this list will also show how the new orders will be adjusted.
This report will be available on request anytime during the day prior to
the night of the adjustment.
Order Entry After Adjustment
In entering orders, it is essential for member firms to identify trades in
old (adjusted) series with the option symbol GZP, LXB or ZVG, as the case
may be, and the non-standard exercise price codes; trades in the new
(unadjusted) The Gap, Inc. series must have the standard option symbol GPS,
LGS or ZGS, as the case may be, and the standard exercise price codes.
Brokers should make certain that customers entering closing transactions
describe the option series with the correct exercise price and symbol.
Negligence in this matter could lead customers to establish new positions
in unadjusted series rather than closing out existing positions in adjusted
series. Customers should be informed that each short position in an
adjusted GZP, LXB and ZVG series requires a long position of 150 shares of
The Gap, Inc. stock in order to be fully covered.
Also, customers should be informed that each short position in an adjusted
VWS and LYP series requires a long position of 225 shares of The Gap, Inc.
stock in order to be fully covered.
Calculating Total Premium Per Contract on Adjusted Series
Since The Gap, Inc. adjusted series will have a contract unit of 150
shares, the premium per share for these series must be multiplied by 150 to
calculate the total premium per contract. Hypothetical premiums per share
and total premiums per contract for the adjusted series are shown below:
Premium Contract Total Premium
Per Share Unit Per Contract
GZPLZ Dec 46-5/8 Call $4.00 150 $600.00
GZPMY Jan 43-3/8 Put $1.00 150 $150.00
Position and Exercise Limits
The CBOE Department of Market Regulation has determined that: "The position
and exercise limits following this stock split will be any combination of
GPS, LGS, LYP, VWS, ZGS, GZP, LXB, and ZVG option contracts on the same
side of the market not to exceed 5,625,000 shares of the underlying
security through January 22, 2000. Following the January 2000 expiration
and continuing through January 20, 2001, the position and exercise limits
will be any combination of GPS, LGS, LYP, ZGS option contracts not to
exceed 3,750,000 shares of the underlying security. After January 2001
expiration, the position and exercise limits will revert to the standard
limit of 25,000 contracts."
Newspaper Reporting of Last Sale Information
To facilitate the distinction between the old and the new The Gap, Inc.
series, the financial press will begin using the following symbols on the
day of the adjustment:
GPS Unadjusted Series: GPS
GPS Adjusted Series: GPS O
LGS Unadjusted Series: LGPS00
LGS Adjusted Series: LGPS O
ZGS Unadjusted Series: ZGPS01
ZGS Adjusted Series: ZGPS O
VWS Unadjusted Series: VG PSO
VWS Further Adjusted Series: VG PS O
LYP Unadjusted Series: LG PSO
LYP Further Adjusted Series: LG PS 0 |
