...and I gotta do math to see if I'm ITM. I did it on MO; S April 80's, L May 75's. MO spun off KFT, and after closing around 86 on Friday, MO opened at 67 this morning. I thought they'd just adjust the strike prices, but nnnooooo. According to the options dept. there, I have to multiply 69 shares of KFT and add it to 100 MO's (currently works out to 88.91/share) to see if I'm ITM. Right now, my broker shows me as ITM, but by their instructions, I'm not... Great, just effen great. I was planning on trying to roll this position for a while. I wish they'd just adjust the strike prices.
Whole and fractional stock splits involve strike price reduction. And sometimes, special dividends equal to the difference in strikes. Spin offs tend to get messy since they involve shares of both companies and sometimes even worse for the bookkeeping, the dreaded cash in lieu throw in. Because MO offers May and Jun options as well, if so inclined, you will be able to roll this for awhile. But you may be pulling out your hair(s) with the calculations