What Happens to my Options After a Reverse Split?

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  • Опубліковано 21 гру 2022
  • Quick and easy explanation on what happens to options contracts after a reverse split!
    What happens to my options after a normal split video:
    • What Happens to my Opt...
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КОМЕНТАРІ • 41

  • @TradingGzwithG
    @TradingGzwithG 9 місяців тому +19

    Whos here after the amc reverse split?

    • @carlosops
      @carlosops 9 місяців тому +1

      Me man what's gonna happen 😢

    • @TradingGzwithG
      @TradingGzwithG 9 місяців тому +1

      @@carlosops amc will be 10x the price. So approximately 20 dollars a share. For
      Every 100 anybody owns they will only have 10, but the max value with remain the same. Lets hope it pumps n 3 months man smh

    • @carlosops
      @carlosops 9 місяців тому

      @@TradingGzwithG I have an iron condor at break even of $6 call and 4 put so if what you are saying is right that means I'm screwed lol

    • @user-bc2tb9qs8e
      @user-bc2tb9qs8e 9 місяців тому +1

      I had a 3.5 call before the split lol

    • @TradingGzwithG
      @TradingGzwithG 8 місяців тому +1

      @@carlosops ive never done an iron condor. Does favor you now since amc when from $20 to 11???

  • @aramispa1
    @aramispa1 10 місяців тому

    Thanks. This was very clear...

  • @nyenergytrader
    @nyenergytrader 9 місяців тому +2

    Thank you that helped a lot now. Crossing my fingers. I don’t get murdered on these five dollar puts

  • @carollocke9617
    @carollocke9617 11 місяців тому +1

    Big help! Not as scary as I thought!

  • @josephsaeteurn9158
    @josephsaeteurn9158 9 місяців тому

    thanks!! very clear to understands.. follow you on twitter but didn't really thought about youtube..

  • @NOST0PLOSS
    @NOST0PLOSS Рік тому +1

    Thank you!!!

  • @jaimesanchez1404
    @jaimesanchez1404 5 місяців тому +1

    Set to happen to Canopy Growth Cgc in like a week... what happens over time After a reverse split?
    Going from 3000Sh to 300Sh it looks like

  • @geno8544
    @geno8544 3 місяці тому

    I am new to option trading. So I was thinking maybe I will try an amc option. I seem to enjoy the punishment. Seeing how I am a amc holder for like 3 years with a ridiculously high cost average. After the last reverse split. I was also thinking what happens to my option when AA decides to do another reverse split. Which seems likely. Which is when I found this video lol. Still not sure if I should buy an option or two. You would think it has to go up sometime.

  • @mistercay9321
    @mistercay9321 9 місяців тому

    Hi, so the meaning is the exercise cost still remain then same?

  • @keithbzjr
    @keithbzjr 6 місяців тому

    I've been looking for how warrants are affected by a reverse split.

  • @mikedillon352
    @mikedillon352 Рік тому +7

    My options on the ape split were not adjusted to new price. My 25 call stayed 25 and I lost my ass

    • @MeditateWithSam
      @MeditateWithSam Рік тому

      Same. I lost thousands on that split. It seemed only the strikes were adjusted and nothing else was.

    • @TradingGzwithG
      @TradingGzwithG 9 місяців тому

      Damn im anxious now. I have a $4 call that expires in 2025. The first pump i see thats in the money im dumping im down bad phuck dude

  • @MRT408
    @MRT408 8 місяців тому

    So how does adj option premiums work? Say if I want to buy amc put at $4 and the adj premium is 2.06? Right now the price is $8 so if it expires at 8 does that mean the $4 strike price is worthless or does that $4 strike price become 40 shares?

  • @MelloProto
    @MelloProto Рік тому +1

    So what happens to options that became non-standard due to a split and then go through a reverse split? Will AMC1 just give people the right to 20 shares, assuming conversion rate back is 1:1?

    • @UnusualWhales
      @UnusualWhales  Рік тому +1

      Great question. Not actually sure about non-standards. We'll have to see what happens there

  • @-ssch
    @-ssch 5 місяців тому

    What happens to put sell

  • @EzzeFun
    @EzzeFun 9 місяців тому

    Does the same apply to cash secured short put as in example?

  • @TheTribality
    @TheTribality Рік тому

    Can you tell me please if any special extra shit happens with CSPs and CCs in a reverse stock split situation? (margin requirement changes, premium changes etc??)

    • @UnusualWhales
      @UnusualWhales  Рік тому +1

      Nothing related to the value/margin requirement should change.

    • @TheTribality
      @TheTribality Рік тому

      @@UnusualWhales thank you very much!

  • @mattconey7338
    @mattconey7338 Рік тому

    What is the typical price action ? Up or down

    • @UnusualWhales
      @UnusualWhales  Рік тому +3

      A reverse split is typically bearish, but meme stocks have a mind of their own

    • @hang_tight
      @hang_tight Рік тому

      Do those strikes with the odd value of shares paired to contract after the r. Split become illiquid? I doubt there would be buyers for those

    • @Happycat8385
      @Happycat8385 Рік тому

      So I have 95 call options that expire in a year for jagx and they r/s on Jan 23rd and the stock has declined since but, I wanted to know if the stock happened to recover dramatically in the next year would the options still increase in value ..thanks

  • @wendyfarris9303
    @wendyfarris9303 8 місяців тому

    What if it says you can sell it, but you can't buy more? Who is buying them???? The price actually fluctuates!

    • @UnusualWhales
      @UnusualWhales  8 місяців тому

      Non-Standard options are usually only allowed to be closed

  • @jb4740
    @jb4740 Рік тому

    What happens to the premiums

    • @UnusualWhales
      @UnusualWhales  Рік тому

      The overall equity of the position will remain the same so the premium should remain the same as well

  • @mikedillon352
    @mikedillon352 Рік тому

    So what ever way fks retail is the way the market swings it seems like