Reverse Split for SPXS

TimtheEnchanter said:
I have 600 of these doggies and sold 6 options, now that we have a reverse split 1:10
I won't even have one option [if I understand this correctly]. Should I buy 4 more to average down and wait it out or just dump it all...
https://www.prnewswire.com/news-rel...nd-reverse-splits-of-four-etfs-301186748.html
More...


You’ll end up having your 6 options, just linked to the pre-split underlying, usually viewable as reference symbol like SPXS1, SPXS2, or whichever symbol is available. Buying more options won’t change anything, unless you’d want to have a round number of 100 new shares against 10 of “old” options.
Though those options will be very illiquid and you may not be able to close them until their expiration, unless you’d accept large slippage. You also won’t be allowed to buy more of them later, only exit/close existing ones.
It may be best to close them now and open new positions later. Or wait till expiration if that was your plan anyway.
Note that this may work differently than on some stocks where they simply adjust the strikes, so both old options and new options continue to co-exist. On decaying ETFs they usually rename the symbol to SPXSx, while post-split SPXS becomes a new underlying for new options.
 
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