Mon, Dec 29, 2014, 1:26 AM EST - U.S. Markets open in 8 hrs 4 mins

Recent

% | $
Quotes you view appear here for quick access.

The Wendy's Company Message Board

  • gollywogazoo gollywogazoo Jul 2, 2009 5:30 PM Flag

    sold the wwvab's against my long position

    each call = 425 shares @ a $10 strike price, expiring Jan 2010. But I must say I'm very suspicious when Mr. Market hands me a dollar & change time premium on an option fully $6 out-of-the-money...

    am I missing something here?

    SortNewest  |  Oldest  |  Most Replied Expand all replies
    • I agree with pepsite. The 1/2010 options are leftover Wendy's options from before the merger. That's why they show strike prices as high at $45, dating from when Wendy's traded in the 30's and higher. Options on the merged company use a Nov-Feb-May-August cycle, with January 2010 the last of the old Wendy's options.

      My math could be off, so check with your broker, but I think you need to divide everything by 4.25 (the amount of the share exchange). So...while the contract shows a strike price of $10, divided by 4.25 means a true strike price for each contract of about $2.35 for 425 shares. That's why the premium seems so high; it's well into the money and actually reflects no premium at all to the market. Unless the stock collapses, you're going to be exercised in January.

    • Those are Non-Standard (ns)options, a normal call contract is for 100 shares.

      You should ask your broker to check with Options Clearing Corporation for any other conditions associated with those calls, I never buy any calls that have the NS designator attached to them. Those options can be squirrely because they usually reflect some occurrence such as a reverse split, and can have other restrictions on them. In this case, they are probably left over Arbys options from the merger.

      Good luck!

 
WEN
8.92-0.07(-0.83%)Dec 26 4:00 PMEST

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.