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?
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.
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.
Are these options any different to the one listed on the exchange, say March puts / calls. I'm not following.
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!
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
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?