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Jeff started following Introduce Yourself! and Option Question in a reverse split situation.
Option Question in a reverse split situation.
Jeff posted a topic in Options TradingLast spring, I bought 6 contracts for call options on USO for $2 strike price for Jan 21, 2022 expiry with oil in the tank. After I bought these contracts, USO went thru an 8-1 reverse split. In my account now when I look in the option pricing Jan 21, 2022, there is 2 sets of option pricing. On the adjusted pricing (which I own) for the same contract with a bid price of $2.90 per option currently. When i look at the regular contract which should be $2 x 8 = $16 strike price, the bid price is $25.35 per option. Now if I take $2.9 x 8 (for the reverse split), I get $23.2 for the option price. Why is there a difference? Shouldnt it be simple math for the price between the 2 contracts Thxs Jeff
Jeff replied to Lee W's topic in Members Introductions & MeetupsHi All, my name is Jeff and I signed up for BBT at the end of December. I live in Calgary with my wife and we love getting to the outdoors including hiking, skiing and mountain biking. One of my main goals this year was to learn if day trading was for me and if I actually could become a profitable trader, so at some point in the next 2-5 yrs, I could retire from drilling oil and gas wells in Alberta and move somewhere closer to mountains and lakes. From Andrew's book BBT seems like a great place to start. I am working through the education series and will get setup hopefully with sim trading over breakup (April 15 to June 15th) when my rigs will be stuck in mud and I will have more time. Take care and looking forward to learning from everyone. Jeff