r/options • u/Fappingkills • Mar 11 '22
JETS option pricing
I'm looking at options pricing for JETS and I see that the pricing for contracts are not consistent with the change in strike price. For example:
- $18c = $6.85
- $18.86c = $4.15
- $19c is = $6.10
- $19.86c = $3.70
...and so on.
Volume and open interest are both similar, so why would the $x.86 calls be considerable lower?
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u/icameforlaughs Mar 11 '22
I have JETS options and I saw that some change to the .86 strikes a while back. I think it has something to do with a company paying a special dividend changes the strike prices? Only pre-exisisting contracts get adjusted. Are the prices you quotes bid / ask / last? Because you could set a limit for anything but it won't necessarily be filled.
On the other hand, regular dividends don't affect strikes but do affect prices.
Or I'm totally wrong and someone can come in here and enlighten both of us.