I hold 200 USO July 11$ Calls, like many out there trying to make a buck on any bounce in oil. I have since learned this trade is worthless with USO losing money hand over fist.
I was confused however to the reaction the day of the split. The night before these had a value of around $700 but on the open these quickly went hard offered at 0.5, basically worthless.
So these are now 88$ Calls? These have 70k open interest and now have zero delta. If something happens and oil prices rocket to 50$ overnight these are still worthless?
There is nothing I can do with the position and I accept the stupidity of my long shot gamble but I would like to know how that money vanishes overnight and what happens if the market ramps ups again.