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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: Marc D. who wrote (7054)	3/7/1998 5:42:00 PM
From: mc	Read Replies (1) \| Respond to of 14162

If COMS bought USRX with stock, the option that would be adjusted would be the USRX option, not the COMS options. So you should look for USRX options not COMS. From the CBOE book "Characteristics and Risks of Standardized Options:" EXAMPLE: If XYZ is acquired by PQR in a merger where each holder of XYZ stock receives $50 plus 1/2 share of PQR stock for each share of XYZ stock held, XYZ options might be adjusted to call for the delivery of $5,000 in cash and 50 shares of PQR stock instead of 100 shares of XYZ stock. cboe.com Now, I already looked at the CBOE page and know USRX options do not show up. If there are some that were so far out that they should still exist, I don't know where to find them. While the example above is the general rule, the Adjustment Panel does not necessarily have to do the standard adjustment. You would have to call your broker and find out what happened to them. Good luck, Gary