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I bought puts on WYNN before the last earnings report in expectation of a drop in stock price. Instead WYNN announced an $8 special dividend and the stock price went up about $8.00 which in turn dropped the value of my put by about 50%.

Today is the ex-dividend date and the stock price appeared to have dropped $8.00 at the bell but I found out from my broker that it was an adjustment to the price to account for the dividend and that my put options will also be adjusted. They said my 117.00 put option will be adjusted to a lower strike price put which means I'm still down around 50% on my put. Today all options have been frozen so there is no option trading going on with WYNN today. This is a new scenario to me and I have never seen this happen before.

So what I gather is that upon the announcement of the dividend, the $8.00 was priced in by the market, which in turn hurt my put option. Upon the payment of the option, the market makers adjusted the price of the stock by $8.00 and options were adjusted as well which effectively means the dividend announcement is still priced in but not the dividend payment.

Anyone have any experience with this kind of situation?
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