I’d been traveling again and I failed to notice that my OIHER call options had undergone a change. I figured I’d write about it since I’ve been asked this question before in the past.
If you read the news, you might have heard that National Oilwell has acquired Grant PrideCo and these two companies were components of the Oil Holders Trust (OIH). I had sold two contracts on OIH for May expiry so now those options have changed from OIHER to OKVER. Essentially what has happened in the transaction was that a dividend was paid out for each 100 shares of OIH so that “excess” money has to be accounted for somewhere in the options record and thus you have the adjustment.
Nothing bad will come of this except it becomes interesting to keep track of the options should you choose to close out your position. Oh yeah, I just raked in another $416.00 with this ETF. For more details, you can read about it here.
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