Hello, I have Sep13 3.5$ options of $SIRI, which is now SIRI1 basket, and there was a split. Before the split the price was bellow the strike, but now price is deep in the money. It seems the options I own still have the value of before the split, why?
$SIRI options after the company split
byu/5haolinstyle inoptions
Posted by 5haolinstyle
8 Comments
[deleted]
3.5 is now $35. Think of it that way. If the new price goes to $35 you will be ITM. The stocks paid out 1:10.
Your calls are worthless now. They are the equivalent of 35Cs.
Assuming it’s a call, if you exercise, you pay $350, and receive 10 shares, not 100. The option is OTM. Read the OCC memo:
https://infomemo.theocc.com/infomemos?number=55159
Lesson 101: Do not hold options during the spilt.
And never buy options after a split, without knowing what each contract represents, as it’s not the standard 100 shares per contract.
keep watching it, I wouldn’t say youre sunk yet… maybe it’ll get that traction tomorrow lol, buffets been eating it up
[https://www.fool.com/investing/2024/09/10/most-anticipated-reverse-stock-split-has-arrived/](https://www.fool.com/investing/2024/09/10/most-anticipated-reverse-stock-split-has-arrived/)
I am in a similar position, although I had bought calls for Jan 2026 at $1.5 and $5. Will I be able to trade these in the future or will I be only able to exercise?