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I also observe from several sources, including Kent's URL, that there
is no OI on the straight CCC March 15 calls, so I doubt the quotes one
sees are good. The CLTCC that is shown in some sources as the C Mar 15
call actually requires delivery of:
<font
xmlns:cboe="x-schema:CBOESchema.xml">(A) 100 shares of Citigroup Inc.
("C"); plus (B) 4 shares of Travelers Property Casualty Corp. Class A
("TAP.A") Common Stock; plus (C) 8 shares of Travelers Property
Casualty Corp. Class B ("TAP.B") Common Stock; plus (C) cash in lieu of
0.30422 share of Travelers Property Casualty Corp. Class A ("TAP.A")
Common Stock; plus (D) cash in lieu of 0.84326 share of Travelers
Property Casualty Corp. Class B ("TAP.B") Common Stock.
Fortunately, March is the last month of this adjustment in the
short-term options. There are still some leaps outstanding with the
Travellers adjustment.
Regards
DanG
Kent Rollins wrote:
Here's a list showing the
non-conforming:
<a
href="">http://bigcharts.marketwatch.com/quickchart/options.asp?symb=c&sid=117685&time=8
Kent
<div
>-----
Original Message -----
<div
>From: <a
title="r.raffurty@xxxxxxxx" href="">Ray
Raffurty
To: <a title="realtraders@xxxxxxxxxxxxxxx"
href="">realtraders@xxxxxxxxxxxxxxx
Cc: <a title="MedianLine@xxxxxxxxxxxxxxx"
href="">MedianLine@xxxxxxxxxxxxxxx
Sent: Saturday, March 08, 2003 6:54 AM
Subject: Re: [RT] This Week's Most Unusual Covered Call
Hi John,
This trade has me bothered, it
should not happen. See the attached chart. I'm wondering if it is
for 100 shares. C has been very acquisitive lately and it is possible
that CCC includes additional shares from an acquisition. I checked
the CBOE <a
href="">http://www.cboe.com/search/searchSite.asp?adhoc=true&word=Citigroup%202003 site
and could not find a smoking gun that would explain this but I think
you should investigate it further with your broker.
The CCC is a correct symbol for
calls representing 100 shares at $15 and I would expect to see
nonconforming contracts to have a symbol like CLTCC but mistakes do
happen. I hope I'm wrong, but if I'm correct, you are not fully
covered and you will be exercised. In that case you would be short
the difference in shares. You would then need to buy the shares to
cover the short. Of course you can buy the shares now to be
fully covered but that will screw your $2 profit.
Again I hope I'm wrong but I've seen
it happen before. Let me know because it could be a great trade and
we should all get some of it.
Good luck and good trading,
Ray Raffurty
<blockquote
>
<div
>-----
Original Message -----
<div
>From: <a
title="jvc689@xxxxxxx" href="">John Cappello
<div
>To: <a
title="Realtraders@xxxxxxxxxxxxxxx"
href="">Realtraders@xxxxxxxxxxxxxxx
<div
>Cc: <a
title="MedianLine@xxxxxxxxxxxxxxx"
href="">MedianLine@xxxxxxxxxxxxxxx
<div
>Sent:
Saturday, March 08, 2003 12:02 AM
<div
>Subject:
[RT] This Week's Most Unusual Covered Call
I have not seen this before most likely because I was not looking.
But this week I was checking out price discrepancies between Calls
and underlying price of stock.
I found Citigroup [C] traded around $33.90 and the Mar. Call with a
strike price of $15 had a bid of $20.90.[makes my cost $33.90-
$20.90=$13. I sold the Call first and then bought the stock. The net
effect is that if C does not tumble from $33 to under $15 in 10
days,
I will effectively make $2 per share when I am called out on 3/21/03.
Just thought I would share this technique with you. If the option
were further out, I do not think I would have done it.
John
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