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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: freeus who wrote (17149)	9/17/1998 8:12:00 PM
From: James A. Shankland	Read Replies (1) \| Respond to of 77397

Thats a strange way to do business: one usually associates a contract with 100 shares???? It's because of the split. Those Jan 2001 60 calls are really renamed Jan 2001 90 (pre-split) calls that turned into contracts for 150 (post-split) shares with a strike of 60 (post-split). The price is quoted per-share, but since the contract is for 150 shares, a single Jan 2001 CSCO 60 call contract quoted at $22 goes for $3300. To make matters worse, they're bound to offer a new option for 100 post-split shares at 60; that will trade under a different symbol. Options get awfully confusing when splits happen. The best thing to do is to buy options only in companies that don't do well, and hence don't split :-).