CBOE Research Circular #RS99-102
February 23, 1999
Solectron Corporation ("SLR/LOP/ZSR") 2-for-1 Stock Split Ex-Distribution Date: February 25,
1999
Solectron Corporation ("SLR/LOP/ZSR") has announced a 2-for-1 common stock split, with a
payable date of February 24, 1999, to shareholders of record February 10, 1999. The ex-date for
the stock split is Thursday, February 25, 1999.
Contract Adjustment
Pursuant to OCC rules (Article VI, Section 11), all outstanding SLR/LOP/ZSR option series will be
adjusted to reflect this 2-for-1 stock split on Thursday, February 25, 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 SLR/LOP/ZSR 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 SLR/LOP/ZSR series existing on the
business day immediately prior to the ex-date. The option symbol will remain SLR, LOP or ZSR, as
the case may be. 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 25, 1999, all trades, corrections and exercises must
be submitted to the CBOE and OCC on an adjusted basis.
Adjusted Exercise Prices
On Thursday, February 25, 1999, the ex-distribution date, trading in SLR/LOP/ZSR 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*
SLRCN Mar 70 Calls SLRCG Mar 35
SLRCO Mar 75 Calls SLRCU Mar 37-1/2
SLRCP Mar 80 Calls SLRCH Mar 40
SLRCQ Mar 85 Calls SLRCV Mar 42-1/2
SLRCR Mar 90 Calls SLRCI Mar 45
SLRDH Apr 40 Calls SLRDD Apr 20
SLRDV Apr 42-1/2 Calls SLRDA Apr 21-1/4
SLRDI Apr 45 Calls SLRDX Apr 22-1/2
SLRDW Apr 47-1/2 Calls SLRDB Apr 23-3/4
SLRDJ Apr 50 Calls SLRDE Apr 25
SLRDK Apr 55 Calls SLRDY Apr 27-1/2
SLRDL Apr 60 Calls SLRDF Apr 30
SLRDM Apr 65 Calls SLRDZ Apr 32-1/2
SLRDN Apr 70 Calls SLRDG Apr 35
SLRDO Apr 75 Calls SLRDU Apr 37-1/2
SLRDP Apr 80 Calls SLRDH Apr 40
SLRDQ Apr 85 Calls SLRDV Apr 42-1/2
SLRDR Apr 90 Calls SLRDI Apr 45
SLRDS Apr 95 Calls SLRDC Apr 47-1/2
SLRGL Jul 60 Calls SLRGF Jul 30
SLRGM Jul 65 Calls SLRGZ Jul 32-1/2
SLRGN Jul 70 Calls SLRGG Jul 35
SLRGO Jul 75 Calls SLRGU Jul 37-1/2
SLRGP Jul 80 Calls SLRGH Jul 40
SLRGQ Jul 85 Calls SLRGV Jul 42-1/2
SLRGR Jul 90 Calls SLRGI Jul 45
SLRGS Jul 95 Calls SLRGC Jul 47-1/2
SLRJP Oct 80 Calls SLRJH Oct 40
SLRJQ Oct 85 Calls SLRJV Oct 42-1/2
SLRJR Oct 90 Calls SLRJI Oct 45
LOPAG Jan 35 Calls 2000 LEAPS LOPAW Jan 17-1/2
LOPAI Jan 45 Calls LOPAX Jan 22-1/2
LOPAK Jan 55 Calls LOPAY Jan 27-1/2
LOPAM Jan 65 Calls LOPAZ Jan 32-1/2
LOPAO Jan 75 Calls LOPAU Jan 37-1/2
LOPAQ Jan 85 Calls LOPAV Jan 42-1/2
ZSRAG Jan 35 Calls 2001 LEAPS ZSRAW Jan 17-1/2
ZSRAI Jan 45 Calls ZSRAX Jan 22-1/2
ZSRAK Jan 55 Calls ZSRAY Jan 27-1/2
ZSRAM Jan 65 Calls ZSRAZ Jan 32-1/2
ZSRAO Jan 75 Calls ZSRAU Jan 37-1/2
ZSRAQ Jan 85 Calls ZSRAV Jan 42-1/2
EXISTING SERIES ADJUSTED SERIES*
SLRON Mar 70 Puts SLROG Mar 35
SLROO Mar 75 Puts SLROU Mar 37-1/2
SLROP Mar 80 Puts SLROH Mar 40
SLROQ Mar 85 Puts SLROV Mar 42-1/2
SLROR Mar 90 Puts SLROI Mar 45
SLRPH Apr 40 Puts SLRPD Apr 20
SLRPV Apr 42-1/2 Puts SLRPA Apr 21-1/4
SLRPI Apr 45 Puts SLRPX Apr 22-1/2
SLRPW Apr 47-1/2 Puts SLRPB Apr 23-3/4
SLRPJ Apr 50 Puts SLRPE Apr 25
SLRPK Apr 55 Puts SLRPY Apr 27-1/2
SLRPL Apr 60 Puts SLRPF Apr 30
SLRPM Apr 65 Puts SLRPZ Apr 32-1/2
SLRPN Apr 70 Puts SLRPG Apr 35
SLRPO Apr 75 Puts SLRPU Apr 37-1/2
SLRPP Apr 80 Puts SLRPH Apr 40
SLRPQ Apr 85 Puts SLRPV Apr 42-1/2
SLRPR Apr 90 Puts SLRPI Apr 45
SLRPS Apr 95 Puts SLRPC Apr 47-1/2
SLRSL Jul 60 Puts SLRSF Jul 30
SLRSM Jul 65 Puts SLRSZ Jul 32-1/2
SLRSN Jul 70 Puts SLRSG Jul 35
SLRSO Jul 75 Puts SLRSU Jul 37-1/2
SLRSP Jul 80 Puts SLRSH Jul 40
SLRSQ Jul 85 Puts SLRSV Jul 42-1/2
SLRSR Jul 90 Puts SLRSI Jul 45
SLRSS Jul 95 Puts SLRSC Jul 47-1/2
SLRVP Oct 80 Puts SLRVH Oct 40
SLRVQ Oct 85 Puts SLRVV Oct 42-1/2
SLRVR Oct 90 Puts SLRVI Oct 45
LOPMG Jan 35 Puts 2000 LEAPS LOPMW Jan 17-1/2
LOPMI Jan 45 Puts LOPMX Jan 22-1/2
LOPMK Jan 55 Puts LOPMY Jan 27-1/2
LOPMM Jan 65 Puts LOPMZ Jan 32-1/2
LOPMO Jan 75 Puts LOPMU Jan 37-1/2
LOPMQ Jan 85 Puts LOPMV Jan 42-1/2
ZSRMG Jan 35 Puts 2001 LEAPS ZSRMW Jan 17-1/2
ZSRMI Jan 45 Puts ZSRMX Jan 22-1/2
ZSRMK Jan 55 Puts ZSRMY Jan 27-1/2
ZSRMM Jan 65 Puts ZSRMZ Jan 32-1/2
ZSRMO Jan 75 Puts ZSRMU Jan 37-1/2
ZSRMQ Jan 85 Puts ZSRMV Jan 42-1/2
Any additional SLR/LOP/ZSR 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 A (21-1/4), B (23-3/4), Y (27-1/2), Z (32-1/2), U (37-1/2), V
(42-1/2) and C (47-1/2) 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 SLR/LOP/ZSR 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 25, 1999, all outstanding SLR Apr
40 options will become Apr 20 options, and SLR Apr 80 options will become Apr 40 options. Any
SLR Apr 40 positions opened prior to the ex-date that are closed out on or after the ex-date must
be closed out as Apr 20 options. Negligence in this matter could lead customers to establish new
positions in the Apr 40 options rather than closing out then-existing positions in the Apr 20 options.
SLR strikes that will be affected by the adjustment in the manner described above are included in
the table below. Members should be aware of the potential for confusion respecting any of the
related pairs of strikes shown below, and should be cautious in this regard.
Existing Adjusted & Existing Adjusted
Strike Strike Strike Strike
40 20 80 40
42-1/2 21-1/4 85 42-1/2
45 22-1/2 90 45
47-1/2 23-3/4 95 47-1/2
GTC Order Conversion
On Wednesday, February 24, 1999, immediately after the CBOE close, the system will convert or
cancel all resting orders in the SLR/LOP/ZSR order books. 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 120,000 contracts on the same side of the market through January
20, 2001. Following the January 2001 expiration, the position and exercise limits will revert to the
standard limit of 60,000 contracts."
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. |
