$USO Reverse Split - 8 to 1. What happens to my stock and options? $UCO just did a 25 to 1 split.

Lets figure out what happens when a reverse split happens. An 8 to 1 split translates into 12.5 shares/ 100 shares before the split. This is what happens to both the stock and the options. USO can now resume it's downtrend towards zero unless the large short position held by institutions is attacked by a short squeeze and up we go. Unlikely given the ETF is asking to issue another 4 Billion shares where they make $1k/ 100,000 share basket management fee.

[ChrisLee-xqle]

Thanks. I have owned a stock TZA and FAZ for over a year now, and they did a 1 for 8 reverse split today, and when I check my account the stocks are gone. And robinhood is no longer supporting these etfs anymore... very sketchy robinhood has been doing sketchy stuff for the last 2 years where all of a sudden a stock that I own is no longer supported and so I can only close my positions...

[itzikhayon]

Dose the strike price change as well? Let's say I got a call contract that cost me 1$ premium 10$ strike price, the break even is 11$ the market share was sitting at 5$ before the reveres split 5 to 1. After revers split the price of a share went to 25$ in the money. The question would i be able exercise this contract 20x shares times 14$ ITM?

[Skeptycs]

Hey Dan, so since after a stock split there are two categories of option contracts, do the old options contracts lose liquidity, open interest, and volume because now traders are shifting to the new contracts? I was wondering because I'm holding debit spreads on TSLA and they are doing a 5-1 forward split, so I'm not sure if I should exit my positions before this happens because of this potential risk.

[andyy]

Hi Dan, can you look into $SDC and $NAT and see if they are worth getting into? Thanks.

[swats]

Hey Dan, I just subbed to your channel. I have 100 contracts USO 01/21/22 $10 Call. I am actually new to options. Can you plz explain to me in a simple language, what will happen to these? Currently, my Etrade account shows -72% for this trade. I don't really get it.

[BallisticKnifeJesus]

Hey Dan!

Im very new to this concept and will try to give you what information i nelieve is relevant. I have 2 USO $0.50 2022 contracts with a breakeven price of $3.02 per share. With that information do you think i should try to sell the position tomorrow, or would you say i am okay?

[braden]

So if I have USO Calls am I screwed for the coming split?

[JeremyB]

Soooo... do reverse splits typically do well? I saw in the news that USO just dumped June contracts and went more long term