Mario Kadastik
Active Member
Ok, interesting case today. I held two UVXY calls last night and overnight the UVXY did a reverse split 4:1. Now this morning my two calls (as there wasn't enough calls to merge them into a new call) are called UVXY2 basket at the old strike price etc. My broker told me that this is really an exceptional case and those basket instruments will probably have an order of magnitude less liquidity and had I had a standard investment account they'd have bought those out "at a fair price".
Any recommendations on what to do with those calls? They were for Feb 14th expiration at strike 15 and UVXY itself has gone up $4.3 (i.e. $1.09 pre-split) bringing me nicely in the green. Do you think the basket books will trade in sync with UVXY, will there be enough liquidity or should I just try to close the positions at market open and roll into the new UVXY? Never lived through a reverse split before so kind of new to this while not new to options trading![Wink ;) ;)](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)
Any recommendations on what to do with those calls? They were for Feb 14th expiration at strike 15 and UVXY itself has gone up $4.3 (i.e. $1.09 pre-split) bringing me nicely in the green. Do you think the basket books will trade in sync with UVXY, will there be enough liquidity or should I just try to close the positions at market open and roll into the new UVXY? Never lived through a reverse split before so kind of new to this while not new to options trading