Anyone here into Option trading? I have a simple question, for ticker A, (Agilent Technologies Inc.) for every strike price there are two calls, for example, strike 35, there is AKG.X trading at $0.5 and AXWKG.X trading at $1.4. What is the deal here?
Usually multiple option series indicate that the company made an acquisition. The acquired company is the secondary series, here axwkg. Example Regions Financial(RF) acquired Amsouth in the past year. AmSouth's stock is no longer listed as of this week, but its options are still listed under Region's options.
Thanks, that seems to be the case, Agilent just acquired Verigy Ltd. In this case, can I trade on the secondary, here axwkg? It is much higher than the other call option. I would write these calls covered, can I do that?
I don't know a ton about options but I am a stock trader. I am pretty sure you cannot do what you are trying to do and still have the calls be covered. I believe it's an apples and oranges sort of deal. that extra point or so you are trying to sell is not free money. free money doesn't last more than a few seconds out in the market and it's usually cause of mistakes. that's how I make a lot of my money in the market, so I know free money goes REALLY fast further I thought agilent had a spin off. I think it was a few weeks ago, right? that would make more sense for the price difference in the options. either way...i'll ask when I get to work tomorrow.
The Nov. 35 trading at 1.40 if called stands for 100 shares of A and 12 shares of VRGY. The other Nov. 35 call of A at trading at .50 is a standard call option. Like nyrocket, stated earlier it has to do with some buyout, merger, etc..
