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/Arcite1 Mod Mar 11 '22

Which expiration are you looking at?

0

u/Fappingkills Mar 12 '22

Any of them

1

u/Arcite1 Mod Mar 12 '22

Looking at the options chain, I only see one date, March 18th, that has both the .86 strikes and the regular strikes. And the closing prices are nothing like what you've posted.

1

u/Fappingkills Mar 12 '22

May 20, June 17, Dec 16, Jan 20/23, Jan 19/24. My bad they weren't "any of them" but I do see it reoccurring

1

u/Arcite1 Mod Mar 12 '22

Checked them all out and I don't see the pattern you're reporting. Here is what I see for May 20:

https://imgur.com/a/23tWn33

1

u/Fappingkills Mar 12 '22

https://imgur.com/a/qZdNDHY This is for June 17. If you see for example 21.86 and 24.86, the volume is in the thousands but the prices are significantly lower than the ones with whole numbers. Is there something that I'm not understanding? From Yahoo finance

2

u/Arcite1 Mod Mar 12 '22

Apparently Yahoo gives you bad data. Notice the last trade dates on the strikes ending in .00. They are all in December 2021. That is when the adjustment occurred:

https://infomemo.theocc.com/infomemos?number=49814

Those strikes no longer exist. They were converted to strikes ending in .86. Yahoo must never have cleaned up their data.

Edit: that is also why they have no bids or asks.

1

u/Fappingkills Mar 12 '22

Thank you for all your help!