option effect on stock split?

Discussion in 'Options' started by ggelitetrader000, Aug 17, 2020.

  1. what do u expect for tsla 5/1 split for options? I am assuming each option will be split into 5 x options, each having strike price reduced by a factor of 5 from ma past experience with no change in expiration. i.e. supposed u got call 1800$ 1 option, after split you got 5x options strike 360$.
     
  2. elt894

    elt894

    It's as you described. In general you can look up the adjustments from the OCC.
     
    Atikon likes this.
  3. THX, that rings some bell.
     
  4. There will possibly be a proportional increase in call options and a proportional decrease in the option strike price.