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Author: TMFBreakerBeth Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 377  
Subject: Re: LEAPS & Splits Date: 6/5/2006 1:10 PM
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Hmmm, then, again, maybe not:

Here's another piece of information I received:

=======================================================================

Dear Beth,

Thank you for your interest in options and for your inquiry. We wish you'd contacted us before entering this trade -- and you can call us any trading day. This is a twice-adjusted option that you sold. It has a 133 multiplier for premium and strike. So, if you get assigned on the 15 call, you'll receive $1995 ($15 x 133). But, you'll be obligated to deliver the following components:

New Deliverable Per Contract:
1) 177 Activision, Inc. (“ATVI”) Common Shares
2) $4.80 Cash*

The memo that details this can be found here:

http://www.optionsclearing.com/market/infomemos/2005/oct/21113.pdf

Basically you'll get $1995 and have to deliver the 177 shares of ATVI (worth about @2277.99) plus the $4.80. The total package is about $2282.79, making the 15 call in-the-money by about 2.88.

Remember, if you decide to buy the calls back to close, you'll pay the premium x 133.

Regards,

Joe Harwood
1-888-OPTIONS
Options Investor Services

Options involve risk and are not suitable for everyone. Prior to buying or selling an option you must receive a copy of Characteristics and Risks of Standardized Options. You may obtain a copy by calling 1-888-OPTIONS. The Investor Services Center provides free educational information about products that are cleared by The Options Clearing Corporation (OCC). The information provided herein is without warranty of any kind, and should not be construed as investment advice or a recommendation, solicitation or offer to buy or sell any option or any other security. By using this service, you agree that you will not seek to hold OCC, any OCC employee or agent or any OCC affiliate liable for any innocent or negligent misstatements or omissions.


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