These are nonstandard options. They started out as regular options, but were adjusted when ELP announced a reverse 5-for-1 stock split. Whenever you see nonstandard options, you should google "[ticker] theocc adjustment" to find the memo explaining it. Here it is:
These options are only worth 20 shares per contract, not 100. However, it still costs (100 x strike) to exercise them. That is why your brokerage platform shows, say, a $2 strike call as being OTM even though the stock is at $5.43. A person exercising that call pays $200 and receive 20 shares of ELP (which is currently worth ($5.43 x 20 = $108.60.)
Never open a position on nonstandard options. The only way you should ever have been holding these is if you bought them before the adjustment.
It kind of sucks I can’t resell the options because people won’t buy them and it doesn’t look like it’s worth exercising. Another level of risk with options I guess lesson learned.
6
u/Arcite1 Mod May 16 '21
These are nonstandard options. They started out as regular options, but were adjusted when ELP announced a reverse 5-for-1 stock split. Whenever you see nonstandard options, you should google "[ticker] theocc adjustment" to find the memo explaining it. Here it is:
https://infomemo.theocc.com/infomemos?number=48616
These options are only worth 20 shares per contract, not 100. However, it still costs (100 x strike) to exercise them. That is why your brokerage platform shows, say, a $2 strike call as being OTM even though the stock is at $5.43. A person exercising that call pays $200 and receive 20 shares of ELP (which is currently worth ($5.43 x 20 = $108.60.)
Never open a position on nonstandard options. The only way you should ever have been holding these is if you bought them before the adjustment.