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What will happen to my options position if there is a split or reverse split towards the underlying stock?

If you are holding options and the underlying stock undergoes a reverse split, it may result in an adjustment in the number of shares deliverable upon exercise, while the exercise price remains the same. Since every situation is different you can check with the OCC regarding how a stock split will impact a given option contract.


Option trading entails significant risk and is not appropriate for all investors. Option investors can rapidly lose the entire value of their investment in a short period of time and incur permanent loss by expiration date. You need to complete an options trading application and get approval on eligible accounts. Please read the Characteristics and Risks of Standardized Options and Option Spread Risk Disclosure before trading options.

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