Back To Define:by Optiontradingpedia.com


Define: Adjusted Options



Options that are created as a result of a capital restructure in the underlying stock such as a merger or buyout.

It is non-standardized and often has premiums that seems to be lower than intrinsic value but really isn't because its deliverables are different from normal options.

Deliverables of adjusted options may be stocks of current company along with some stock of another company or cash.

Read the full tutorial on Adjusted Options.