OCC Information Memo 59738, dated September 11, 2026, establishes the post-merger treatment of AtaiBeckley options: the adjusted deliverable is USD 675 in cash per contract, with no contingent value rights. Expirations after September 18 move forward to September 18; dates before that cutoff remain unchanged. The practical consequence is that an outstanding ATAI option no longer represents a way to participate in the acquired company’s future clinical milestones.
This is a new contract-adjustment phase. The earlier ATAI halt-window article described a tentative timetable. Nasdaq’s updated corporate-action notice now confirms the merger closed before the September 11 market open. Investors comparing old calendars with their account records need the completed-event terms, rather than the original expected dates.
The confirmed stock timetable
Nasdaq’s updated ECA2026-633 says shareholders approved the merger on September 8, ATAI’s last trading date was September 10, and trading was halted at approximately 7:50 p.m. ET that day. It remains halted on September 11, with suspension effective September 14. These dates replace the earlier anticipated September 8 halt and September 9 closing path.
The distinction matters when reconstructing an account statement. A proposed closing date, the stock’s last trading session, exchange suspension and an option’s expiration are different events. A calendar entry for one should not be used as evidence that another has occurred. The updated exchange notice establishes the stock timeline; the OCC notice establishes the outstanding option terms.
What the adjusted contract delivers
The option settlement terms are specific:
| Item | OCC treatment |
|---|---|
| Deliverable per contract | USD 675 cash, calculated as USD 6.75 times 100 |
| Non-transferable CVRs | Excluded |
| Settlement mechanism | OCC cash settlement; difference between extended strike amount and cash deliverable |
| Series expiring after September 18 | Advanced to September 18, 2026 |
| Earlier expirations, including relevant FLEX series | Unchanged |
| Exercise-by-exception threshold | USD 0.01 in all account types |
| Existing American-style options | Remain exercisable before expiration |
| Settlement after exercise | One business day |
The memo invokes OCC Rule 807 for the accelerated expiration of cash-only contracts. Its terms do not create a shareholder CVR entitlement for someone who merely retains an adjusted option.
Why It Matters For Options Traders
The shareholder package and option payoff answer different questions
Lilly’s acquisition announcement specified USD 6.75 in closing cash plus a CVR with up to USD 2.50 in possible additional payments per share. Those payments depend on development and regulatory milestones for BPL-003 and VLS-01, with deadlines extending years after closing. Lilly explicitly said there was no assurance that CVR payments would occur.
Adding the maximum contingent amount to the cash price would therefore confuse potential future shareholder receipts with immediate consideration. Applying that combined number to an adjusted option would introduce a second error: treating a right absent from the contract as if it were deliverable. This is a contract-definition issue, not a view on whether the drug programs will succeed.
Gross exercise value is not investment profit
For an illustrative standard contract with strike K and a 100 multiplier, cash-only call intrinsic value is the positive part of 675 minus 100 times K. Put intrinsic value is the positive part of 100 times K minus 675. These are payoff calculations, not available quotes or recommendations.
For example, a hypothetical USD 5 call has USD 175 of gross intrinsic value, while a hypothetical USD 7 put has USD 25. A hypothetical USD 7 call has no positive intrinsic value under that calculation. These examples do not establish that those strikes remain tradable or that a broker would execute an order at intrinsic value.
Premium paid or received, fees and prior transactions still determine the position’s profit or loss. A positive exercise receipt can coexist with an overall loss if the original premium was larger. For the underlying distinction, see intrinsic value and time value.
A long-dated position can lose its original event horizon
The OIC explains that when an underlying becomes a fixed cash entitlement, options generally convert to fixed cash delivery, ordinary trading generally ceases, and in-the-money contracts lose time value. That changes the interpretation of a long-dated line in a portfolio: a familiar expiration label is not proof of continuing exposure to future business events.
Operationally, reconciliations should use the adjusted terms for each series. A spread also needs to be understood leg by leg; a display that groups positions by their original expiration is not a substitute for checking how each obligation will be processed. No conclusion about current margin treatment or a particular broker’s display follows from the public memo alone.
Exercise processing still deserves attention
A halt is not a statement that all remaining obligations have disappeared. The OIC notes that short positions can owe the adjusted deliverable following assignment. The relevant account question is whether an exercise or assignment has been processed and reflected in cash, not whether the underlying still shows an active stock quote.
Broker instruction cutoffs and account handling should be confirmed directly. The public clearing threshold does not establish a universal customer deadline. Review expiration, assignment and exercise for the general distinction between holding an option, submitting an exercise instruction and receiving an assignment.
Common misunderstandings and caveats
The CVR maximum is not a guaranteed merger price. Milestone conditions and deadlines belong to the shareholder right. Forecasts of clinical success do not change what a separate options contract promises to deliver.
The old timetable is historical context. Nasdaq’s completed-event update is the appropriate reference for the actual stock halt and closing sequence. Earlier reporting should be read with its original publication date in mind.
A displayed quote is not proof of executable liquidity. After corporate actions, stale prices and unchanged position labels can be misleading. This article supplies no current bid, offer, implied volatility, trading-access guarantee or broker-specific instruction.
An exercise amount is not a return forecast. The illustrative arithmetic excludes the cost of acquiring the option and all account-level charges. It also does not determine whether exercising, submitting contrary instructions or taking another action is appropriate for any investor.
The useful next reference is the current contract record and the broker’s processing notice. Matching the series, adjusted deliverable and cash entries provides a firmer basis for reconciliation than extrapolating from a takeover headline.
This is not financial advice. Options trading involves risk and is not suitable for all investors. This article provides general education and market commentary, not a recommendation to trade or exercise any contract.
Sources
- OCC Information Memo 59738, September 11, 2026, cash settlement and accelerated expirations for ATAI:
https://infomemo.theocc.com/infomemos?number=59738 - Nasdaq Trader ECA2026-633, updated closed-merger notice, checked September 11:
https://www.nasdaqtrader.com/TraderNews.aspx?id=ECA2026-633 - Eli Lilly acquisition announcement, shareholder cash and conditional CVR terms:
https://investor.lilly.com/news-releases/news-release-details/lilly-acquire-ataibeckley-advance-therapies-treatment-resistant - Options Industry Council, general corporate-action and cash-buyout mechanics:
https://www.optionseducation.org/referencelibrary/faq/splits-mergers-spinoffs-bankruptcies
