Whither UVXY options?

Discussion in 'Options' started by eleuthera, Jul 17, 2017.

  1. UVXY had a split, no biggie. Then went to hedge and IB didn't offer any options? Any reason why?
     
  2. FSU

    FSU

    Try UVXY1, this is the split adjusted symbol.
     
  3. Will do, thanks.
     
  4. JSOP

    JSOP

    I looked at UVXY1. I don't think it's the right one. The strike price is all wrong still at the $10, $11 etc. when the current price of underlying after the reverse split is at $3X. Everybody will be making a killing with these strike prices.

    Anybody know why IB is not offering the option for UVXY? I have seen the option chain for UVXY with $3X strike on nasdaq.com. http://www.nasdaq.com/symbol/uvxy/option-chain
     
  5. FSU

    FSU

    I don't think it is an IB thing. When I pull up UVXY on my system, all that I see is UVXY1 (and UVXY2, UVXY3 which are adjusted back month contracts from previous splits).

    1 contract of the new UVXY1 is equal to 25 UVXY. I don't see anything quoted other then these.

    The Nasdaq link you had lists standard UVXY, but no quoted market, just a market for the UVXY1.
     
  6. Robert Morse

    Robert Morse Sponsor

  7. Worth an email to the OCC? Or they often this late?
     
  8. JSOP

    JSOP

    This is what OCC has to say about the new UVXY option:

    CONTRACT ADJUSTMENT

    Effective Date: July 17, 2017

    Option Symbol: UVXY changes to UVXY1

    Contract
    Multiplier: 1
    Strike Divisor: 1

    New Multiplier: 100 (e.g., for premium or strike dollar extensions 1.00 will equal $100)

    New Deliverable
    Per Contract: 25 (New) ProShares Ultra VIX Short-Term Futures ETF (UVXY)
    Shares

    CUSIP: UVXY (New): 74347W163

    PRICING

    The underlying price for UVXY1 will be determined as follows:

    UVXY1 = 0.25 (UVXY)

    So according to this, the price of the UVXY1 is supposed to be $35 (for example) * 0.25 = $8.75? But the price from IB is still like before $0.XX? With the strike price just like before at $8.75 and etc., wouldn't people make a killing by Shorting the UVXY and then buying the UVXY1 call? I am really confused.
     
  9. FSU

    FSU

    You're right Bob, regular UVXY options are there today.
     
  10. Robert Morse

    Robert Morse Sponsor

    Any that says -100 :

    upload_2017-7-18_9-29-51.png
     
    #10     Jul 18, 2017