PXD - Pioneer Natural Resources Co.

I noticed that they have regular options and they also have something that shows 24/100. Maybe its a mini option chain or something. Anyone here know what's going on with that? If so, do tell :-)


Note:
I see ICE also some an option listed as 17/100. What's that about? Is it a type of "Mini" option?



Edited 1 time(s). Last edit at 01/03/2014 03:47PM by RichieRick.

There have been 32 views and no one has any comments on it. Wow!

Mini options command 10 shares of stock verses the traditional 100. 17 and 24 sound a little strange! In my honest opinion....regardless of what they are I would leave them be. Use the traditional options they work splendidly and will get you wherever you want to go.....even on those measly little $30 stocks! Sorry no one responded to your inquiry, maybe they just didn't know. Keep working hard man!



Edited 1 time(s). Last edit at 01/05/2014 08:49PM by fireman1984.

If those $30 stocks moved like the big money stocks I would love it. Heck, we all would I suppose:-)

It's ok that no one responded right away. It was an unusual question, and I know everyone is really busy. I'm just trying to stir up some conversation :-)
I could spend hours digging up the info, but I figured someone could toss me a down and dirty explanation for what I was seeing. No worries though :-)

Here's to a great New Years everyone!!!

They are adjusted options where each contract represents 24 shares of PXD; e.g., if you purchase 1 call contract and then exercised it, you would have the right to buy 24 shares. I'm not sure where these options came from, but they might be from the merger of Pioneer Southwest Energy Partners L.P. with Pioneer that closed on 12/17/2013. The holders of Pioneer Southwest Energy Partners shares received .2325 shares of Pioneer for each of their shares. This is close to the 24 multiplier in the adjusted option; i.e., 24/100 is .2325 rounded up.

I suppose a quick call to Pioneer investor relations would yield all the details, but I think this is what you are seeing

They dont move quite as quick, but do not dismiss them. The options move more in line with the stock price on the lower dollar stocks. Research a few of them....ie some of the housing stocks. Beazer homes for example......on 12/16 bzh had a beautiful fp to the upside, with the winds of the market calendar at our backs. You had a nice entry point on the open on the 17th, where you could have bought the jan 20 calls for around $1.87....selling it friday for $ 4.50. All of this only on about a $3 dollar stock move. I can sleep pretty well at night knowing that the cheaper stocks can and will return a measly 140% in $14 days.

Just an example!!! Happy New Years!

Thanks Dan, and Fireman for you input.

I found these numbers when I was looking at options within the TOS platform. I assumed it was indeed some sort of mini option, which is fine I suppose.

As for the lower priced stocks... I enjoy them as well, but I've noticed that there volatility is much lower than I have the patience for :-) Yes they do move well, but it "feels" sooo sllooowwww to me most times :-) I'm usually looking at stocks in my basket between 60 to 100 bucks. With a few of these big money stocks mixed in :-)

If GW had instructed folks to trade these odd-ball options, then we'd all know what they were. That said, many folks on this forum are current/former WSB students, and don't care about trading odd-ball options, hence the lack of responses.

I am a current/former WSB student!!! Of course he never discussed them.

That being said, I can't afford (right now) to use the full options on a stock like google or amazon, so the "mini" option would be my ONLY choice if I wanted to get into a trade on one of those high dollar stock that move so well. Which is why I asked on this forum in the first place. Besides, I'm just practicing these right now:-)