I love how some of the people on this board jump at the chance to give me advice about trading something "I know nothing about"! All I did was ask a simple question but maybe I was not clear. Anyway, I have doubled my net worth YTD, so I'm good.
I do appreciate the link from Maverick where I found the answer I was looking for:
Purpose of Adjusted Options
The purpose of Adjusted Options is to ensure fairness for holders of stock options going through major corporate events. It is not designed to be listed options for trading purposes even though they can be normally traded in an options exchange.
To illustrate the need for adjusted options, lets assume you hold call options in EFG company. One day, ABC company buys out EFG company so EFG company ceases to exist and EFG company stocks disappears from the exchange and becomes ABC stocks. In this case, without adjusted options, you would have lost all your money in the call options as the underlying stock, which is EFG, has ceased to exist. However, that is not fair to the options holders and not a good reflection of the capital reallocation that has happened. EFG company did not just disappear. It has been bought out by ABC company with part ABC stock and part cash. As such, to make sure the value of your call options is not affected, the old EFG call options that you are holding is given a new symbol and adjusted to deliver part ABC shares and part cash, like the example of Quanex Building Products Corporation above. You end up holding Adjusted Options.
The only kind of option that don't get adjusted during major corporate events are out of the money options. When an adjustment happens, extrinsic values of the original options becomes zero instantly. This means that all out of the money options instantly expire worthless and all the extrinsic value of in the money options evaporate instantly as well. Due to this reason, holders of stock options before adjustment cannot be expected to retain 100% value of their original holding and holders of out of the money options before adjustment would have lost their investments.