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May 27, 2020 at 15:44 comment added Bob Baerker Why are you restating the obvious rather than addressing my comment? I posted that info below in the OCC memo as well explaining it in my linked answer. And it would be no less confusing if there was a different new ticker than USO1. USO1 is the NEW ticker.
May 27, 2020 at 15:37 comment added D Stanley @BobBaerker No, USO1 is the "renamed" instrument that is equal to the old USO in price and size, and is exchange for 12 "new" USO shares plus cash to cover the remainder. The "new" USO is the new instrument that is 8X the price of the "old" USO (same as USO1). It would be less confusing (for options anyways) if the post-split stock had a new ticker, but it would add confusion in other areas, so OCC documents "rename" the old instrument to distinguish the two.
May 27, 2020 at 15:33 comment added Bob Baerker Yes, adjusted options are a royal headache. Whenever I end up with one, I write a spreadsheet to make sure that the calcs are correct. I think it's a mistake to suggest that there's an equivalence between USO and USO1 options. The former covers 100 shares and the latter 12 shares plus cash-in-lieu (equivalent to 12-1/2 shares). If the strike price has not changed due to the contract adjustment, it can only confuse a reader if an equivalence to a different strike is suggested. It's better to stay within the parameters of the new contract (12 shares + cash with the same strike).
May 27, 2020 at 15:09 history edited D Stanley CC BY-SA 4.0
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May 27, 2020 at 15:08 comment added D Stanley Agreed it's confusing, but here's my interpretation: The strike based on the updated (renamed from pre-split) symbol is the same, but it's equivalent to a different strike on the new (post-strike) instrument. For USO, a pre-split $2 put on USO is now a $2 put on USO1, which is equivalent to a $16 put on the "new" USO due to the 8X multiplier.
May 27, 2020 at 14:54 comment added Bob Baerker As I understand it, the strike price remains the same. Here's an example of an uneven reverse split.
Apr 29, 2020 at 16:28 vote accept Ian
Apr 29, 2020 at 16:28 comment added Ian Thanks, that's exactly what I was looking for! Intuitively that's what I expected to have happen but I wasn't totally sure.
Apr 29, 2020 at 16:24 history answered D Stanley CC BY-SA 4.0