I want to sell put options for Solar City for Jan 2018, but what

TSLA buying SCTY would be an all-stock deal for $28 a share

Doesn't this mean that the option contract for 100 shares of SCTY would become 12 shares of TSLA? The calculator actually say 12.4444 so would it be 12 or would I be obligated to buy 13 shares?

If so, seems like a great deal if the strike price is around $28. The model 3 will be in full swing and buying TSLA would surly be higher than $225, and if not and I were assigned the stock that would be a good bargain.

If I sold put options for Tesla for the same amount, I would only get $707. Verses $1,150 for selling put options for SCTY. What do you guys think?

>>1395889
Why not just buy options on TSLA then? exception contracts trade at wider spreads and are much less liquid.

>>1395889
Has it been confirmed that it would be a stock swap?

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>>1395899
Well partially because, 100 shares of tesla would be 22k, and 100 shares of solarcity would only be 3k.

Also what do I need to know about "exception contracts"? What are they?

>>1395902
Yes, forbes says "It would be a stock deal where each SolarCity share would receive between 0.122x to 0.131x shares of Tesla common stock which would be between $26.50 to $28.50 per SolarCity share"