Options Trading Tutorial

Stock options question: duplicate quotes for same strike price?

Hi, Have a look at BAC Jan 2010 options: http://finance.yahoo.com/q/op?s=BAC&m=2010-01 For every strike price you can see 2 quotes. For example, S:2.50, there's on quote at 0.89 and another at 11.85. What's the difference between those 2 quotes? Thanks

Public Comments

1. When Countrywide Financial was acquired by BAC their options were adjusted to become BAC options. The prefix for the 2010 LEAPS became KGZ. Each of these adjusted options requires delivery/receipt of (A) 18 shares of BAC Common Stock, plus (B) $5.57 cash in lieu of 0.22 fractional share of BAC Common Stock if the option is exercised/assigned. The WBA prefix is used for standard non-adjusted options, where each option would require or receipt of 100 shares. When you see another situation like this you can search for a contract adustment at http://www.cboe.com/tradtool/contracts.aspx