Options Contract Adjustment
CBOE Research Circular #RS99-68
February 11, 1999
Jabil Circuit, Inc. ("JBL") 2-for-1 Stock Split Ex-Distribution Date:
February 18, 1999
Jabil Circuit, Inc. ("JBL") has announced a 2-for-1 common stock
split, with a payable date of February 17, 1999, to shareholders of
record February 5, 1999. The ex-date for the stock split is
Thursday, February 18, 1999.
Contract Adjustment
Pursuant to OCC rules (Article VI, Section 11), all outstanding JBL option series will be adjusted
to reflect this 2-for-1 stock split on Thursday, February 18, 1999, at 8:30 A.M. Chicago time. The
OCC will issue one additional contract for each open contract on the ex-date. Also on the ex-date,
each JBL series will have an adjusted exercise price equal to one-half of the exercise price rounded
to the nearest 1/8 of a point for each JBL series existing on the business day immediately prior to
the ex-date. The option symbol will remain JBL. Adjusted exercise prices are shown below. [Any
FLEX series that may exist will be adjusted in a similar manner to the standardized option.]
The option adjustment will appear in the Daily Position Report of the clearing member firms on the
ex-date. After 8:30 A.M. Thursday, February 18, 1999, all trades, corrections and exercises must
be submitted to the CBOE and OCC on an adjusted basis.
Adjusted Exercise Prices
On Thursday, February 18, 1999, the ex-distribution date, trading in JBL 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*
JBLBL Feb 60 Calls JBLBF Feb 30
JBLBM Feb 65 Calls JBLBZ Feb 32-1/2
JBLBN Feb 70 Calls JBLBG Feb 35
JBLBO Feb 75 Calls JBLBU Feb 37-1/2
JBLBP Feb 80 Calls JBLBH Feb 40
JBLCE Mar 25 Calls JBLCV Mar 12-1/2
JBLCF Mar 30 Calls JBLCC Mar 15
JBLCG Mar 35 Calls JBLCW Mar 17-1/2
JBLCH Mar 40 Calls JBLCD Mar 20
JBLCI Mar 45 Calls JBLCX Mar 22-1/2
JBLCJ Mar 50 Calls JBLCE Mar 25
JBLCK Mar 55 Calls JBLCY Mar 27-1/2
JBLCL Mar 60 Calls JBLCF Mar 30
JBLCM Mar 65 Calls JBLCZ Mar 32-1/2
JBLCN Mar 70 Calls JBLCG Mar 35
JBLCO Mar 75 Calls JBLCU Mar 37-1/2
JBLCP Mar 80 Calls JBLCH Mar 40
JBLFH Jun 40 Calls JBLFD Jun 20
JBLFI Jun 45 Calls JBLFX Jun 22-1/2
JBLFJ Jun 50 Calls JBLFE Jun 25
JBLFK Jun 55 Calls JBLFY Jun 27-1/2
JBLFL Jun 60 Calls JBLFF Jun 30
JBLFM Jun 65 Calls JBLFZ Jun 32-1/2
JBLFN Jun 70 Calls JBLFG Jun 35
JBLFO Jun 75 Calls JBLFU Jun 37-1/2
JBLFP Jun 80 Calls JBLFH Jun 40
JBLIK Sep 55 Calls JBLIY Sep 27-1/2
JBLIL Sep 60 Calls JBLIF Sep 30
JBLIM Sep 65 Calls JBLIZ Sep 32-1/2
JBLIN Sep 70 Calls JBLIG Sep 35
JBLIO Sep 75 Calls JBLIU Sep 37-1/2
JBLIP Sep 80 Calls JBLIH Sep 40
JBLNL Feb 60 Puts JBLNF Feb 30
JBLNM Feb 65 Puts JBLNZ Feb 32-1/2
JBLNN Feb 70 Puts JBLNG Feb 35
JBLNO Feb 75 Puts JBLNU Feb 37-1/2
JBLNP Feb 80 Puts JBLNH Feb 40
JBLOE Mar 25 Puts JBLOV Mar 12-1/2
JBLOF Mar 30 Puts JBLOC Mar 15
JBLOG Mar 35 Puts JBLOW Mar 17-1/2
JBLOH Mar 40 Puts JBLOD Mar 20
JBLOI Mar 45 Puts JBLOX Mar 22-1/2
JBLOJ Mar 50 Puts JBLOE Mar 25
JBLOK Mar 55 Puts JBLOY Mar 27-1/2
JBLOL Mar 60 Puts JBLOF Mar 30
JBLOM Mar 65 Puts JBLOZ Mar 32-1/2
JBLON Mar 70 Puts JBLOG Mar 35
EXISTING SERIES ADJUSTED SERIES*
JBLOO Mar 75 Puts JBLOU Mar 37-1/2
JBLOP Mar 80 Puts JBLOH Mar 40
JBLRH Jun 40 Puts JBLRD Jun 20
JBLRI Jun 45 Puts JBLRX Jun 22-1/2
JBLRJ Jun 50 Puts JBLRE Jun 25
JBLRK Jun 55 Puts JBLRY Jun 27-1/2
JBLRL Jun 60 Puts JBLRF Jun 30
JBLRM Jun 65 Puts JBLRZ Jun 32-1/2
JBLRN Jun 70 Puts JBLRG Jun 35
JBLRO Jun 75 Puts JBLRU Jun 37-1/2
JBLRP Jun 80 Puts JBLRH Jun 40
JBLUK Sep 55 Puts JBLUY Sep 27-1/2
JBLUL Sep 60 Puts JBLUF Sep 30
JBLUM Sep 65 Puts JBLUZ Sep 32-1/2
JBLUN Sep 70 Puts JBLUG Sep 35
JBLUO Sep 75 Puts JBLUU Sep 37-1/2
JBLUP Sep 80 Puts JBLUH Sep 40
Any additional JBL series that are added prior to the ex-date will also be adjusted in the manner
described above.
* Some series have non-standard strikes and price symbols with respect to the OPRA exercise
price symbol format. Note that Y (27-1/2), Z (32-1/2) and U (37-1/2) are non-standard striking
symbols (prices).
IMPORTANT -- Order Entry After Adjustment
Please note that at the time of the adjustment, the strike prices of all JBL options will be reduced by
one-half, and OCC will issue one additional contract for each open contract on the ex-date. At 8:30
A.M., Chicago time, on Thursday, February 18, 1999, all outstanding JBL Mar 25 options will
become Mar 12-1/2 options, and JBL Mar 50 options will become Mar 25 options. Any Mar 25
positions opened prior to the ex-date that are closed out on or after the ex-date must be closed out
as Mar 12-1/2 options. Negligence in this matter could lead customers to establish new positions in
Mar 25 options rather than closing out then-existing positions in Mar 12-1/2 options.
Similarly, all outstanding JBL Mar 30 options will become Mar 15 options, and JBL Mar 60
options will become Mar 30 options. Any Mar 30 positions opened prior to the ex-date that are
closed out on or after the ex-date must be closed out as Mar 15 options. Negligence in this matter
could lead customers to establish new positions in Mar 30 options rather than closing out
then-existing positions in Mar 15 options.
Similarly, all outstanding JBL Mar 35 options will become Mar 17-1/2 options, and JBL Mar 70
options will become Mar 35 options. Any Mar 35 positions opened prior to the ex-date that are
closed out on or after the ex-date must be closed out as Mar 17-1/2 options. Negligence in this
matter could lead customers to establish new positions in Mar 35 options rather than closing out
then-existing positions in Mar 17-1/2 options.
Similarly, all outstanding JBL Mar/Jun 40 options will become Mar/Jun 20 options, and JBL
Mar/Jun 80 options will become Mar/Jun 40 options. Any Mar/Jun 40 positions opened prior to the
ex-date that are closed out on or after the ex-date must be closed out as Mar/Jun 20 options.
Negligence in this matter could lead customers to establish new positions in Mar/Jun 40 options
rather than closing out then-existing positions in Mar/Jun 20 options.
GTC Order Conversion
On Wednesday, February 17, 1999, immediately after the CBOE close, the system will convert or
cancel all resting orders in the JBL 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.
Position and Exercise Limits
The CBOE Department of Market Regulation has determined that: "The position and exercise limits
following this stock split will be 150,000 contracts on the same side of the market through
September 18, 1999. Following the September 1999 expiration, the position and exercise limits will
revert to the standard limit of 31,500 contracts, unless JBL qualifies for a higher tier limit prior to
that time."
Questions regarding this memo can be addressed to the CBOE Investor Services Department at
1-800-OPTIONS (1-800-678 4667), press 3, press 3. |
