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Anderson317

Options and Stock Splits

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I'm just wondering what happens to options if/when a stock or ETF splits or reverse splits.  How are the options impacted? 

 

I'm not looking at anything in particular, the thought just popped into my head this morning.

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10 minutes ago, Anderson317 said:

I'm just wondering what happens to options if/when a stock or ETF splits or reverse splits.  How are the options impacted? 

 

I'm not looking at anything in particular, the thought just popped into my head this morning.

The strikes are automatically adjusted, as is the ratio of shares per option contract - instead of 1 contract being for 100 shares of stock it gets changed according to the split ratio.

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