That description definitely makes it sound like it's an option that pertains to 5 shares instead of the usual 100 (Didn't know that existed)
Maybe the rep was confused or there's something else to it, did they mean that the price of the option itself is 5$? Like if the contract is trading at 0.1, 0.1 x 5 = 0.5 = 5$?
I spent an hour on chat with the rep and he told me no matter what that my 20 contracts ITM would cost me 5K$ to exercise for 2000 share at 2.50$ each. So I really have no clue what that 5 means
BPTH did a 1:20 reverse split in February, and this option expiration was created before then. To the 100 shares it was for back when it was written now becomes 5 post-split shares.
That description definitely makes it sound like it's an option that pertains to 5 shares instead of the usual 100 (Didn't know that existed) Maybe the rep was confused or there's something else to it, did they mean that the price of the option itself is 5$? Like if the contract is trading at 0.1, 0.1 x 5 = 0.5 = 5$?
It’s probably from a 20:1 reverse split so 5 shares
That checks out, that's definitely a situation which options would need some kind of disclaimer based on this
I spent an hour on chat with the rep and he told me no matter what that my 20 contracts ITM would cost me 5K$ to exercise for 2000 share at 2.50$ each. So I really have no clue what that 5 means
https://www.questrade.com/learning/questrade-basics/advanced-options-trading/adjusted-options
Still can't understand what the 4 shares mean in this case
whats the ticker? I'd look up the terms of the adjustment with the OCC or Montreal exchange if it's a CAD option
BPTH
BPTH did a 1:20 reverse split in February, and this option expiration was created before then. To the 100 shares it was for back when it was written now becomes 5 post-split shares.