JJ My dear watson 0 Report post Posted April 24, 2020 So, back in late Feb, I bought 20 of the Jan 21, 2022 $1 call options on Chesapeake. At the time, stock was trading ~$.20, so they were way out of the money by $.80. They did a 200 for 1 reverse stock split. Now the symbol on them is CHK1. Share price is basically the same at $40 now, $.20 then factoring in the multiple of 200. In my trading account, they are still listed as the same call, 20 call options, $1 strike but CHK1 (they added the 1) Advisors were of no help at brokerage, because they obviously didn't get it. These options were trading basically what I paid $.09 a piece right before the split, then all of a sudden, post reverse split, they are $.01 offer, with no bid. How the hell does that happen, and why didn't the OCC just reprice them to $200 strike price? Thanks in advance Share this post Link to post Share on other sites
Kim 8,035 Report post Posted April 24, 2020 They cannot reprice them because they might collide with "new" strikes. Old strikes are always kept after the split. They might be much less liquid, and this could be the reason why there is no bid. Share this post Link to post Share on other sites
Izzard 0 Report post Posted April 25, 2020 For some reason the new deliverable for old CHK options - now CHK1 options, is a fixed cash amount... so it doesn't matter what the stock price is. memo #46878 from theocc.com New Deliverable Per Contract: $16.56 Cash (0.5 x $33.128) Share this post Link to post Share on other sites
