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How Does a Split Affect My Calls


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How Does a Split Affect My Calls

  #1 (permalink)
TGoat
Las Vegas NV/Clark
 
Posts: 13 since Oct 2014
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hVisa is going to split 3 for 1soon, and I own two deep in the money calls. How will that affect my position? What happens to my calls after the split?

Thanks

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  #3 (permalink)
ACstudio
Nashville TN/USA
 
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TGoat View Post
hVisa is going to split 3 for 1soon, and I own two deep in the money calls. How will that affect my position? What happens to my calls after the split?

Thanks

Your position will be adjusted accordingly....your risk profile, Deltas etc will be the same. What sucks is that you will probably end up with some funky strikes and future volume may trade mostly around the whole numbers making yours even less liquid than they are now....just a thought.

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