UNG options after the split???

Discussion in 'ETFs' started by minorearth, Feb 22, 2012.

  1. Does anyone know what's up with UNG options now that it's had it's reverse split? I'm long and short some puts. TWS has them labeled a being 'basket' trades. No word back yet. Anyone, anyone?
  2. crew


    For what its worth, here's what I was told by TD: each contract that you had before the r/s is now for 25 instead of 100 shares. They said these options would be traded as "special options". I had Oct puts with a strike price of $5; for them to be in the money UNG would have to trade below $20. In additon, I had Oct calls with a strike of $6; for them to be in the money UNG would have to trade above $24. UNG closed at $22.16 today.
  3. I have 100 lot UNG 5 feb 24 call, bought at 0.35. my tws shows me a new smbol like ung2, I will leave it expire. since no one seems to trade it, the spread is too large, I do not want to give money to those spread sharks. convert it into UNG, it will be easy to deal with.

    then next monday I will sell UNG if price favorable.
  4. falcon


    Are these options any different to the one listed on the exchange, say March puts / calls. I'm not following.
  5. Special series, see attached PDF, from OCC.
    • ung.pdf
      File size:
      27.3 KB
  6. falcon


    thanks for the reply.
  7. jsigs


    Ok, so after reading the attached file i get that 1 UNG2 option contract holds 25 shares of UNG.

    Just to verify that i got this right, let's take the July 10 UNG2 Put Option.

    It's currently with a bid for $5.60. So if I were to sell this put, I would just need UNG to close above $10 at expiration to collect the full premium? And even if it does close below, I would only have to buy 25 shares at $10 a piece.

    Sorry if this seems fundamental, but I just want to verify in case I'm missing something with this reverse split.

    Thanks guys!
  8. You can't open new orders in split securities - see my answer in the options thread for more detailed answer.

    ps no need to ask twice in different forums - these are decent forums someone would answer you ... eventually :)
  9. are any of you guys charting the loss due to "roll cost/contango" in the actual gas futures this etf is based in? and are you considering it in your trading and pricing of options?