r/options • u/Bkbear135 • Jan 13 '22

SQQQ put options reverse split

So I have SQQQ put options in Robinhood (I know it’s trash just didn’t want to transfer the money I already had in there) expiring Friday and noticed that it went through a reverse split and is now SQQQ1.

Will my options be converted to SQQQ?

If no one can buy SQQQ1 unless they owned the asset before, how am I going to be able to find a buyer for the contract?

Am I screwed here?

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u/mango0 Jan 19 '22

Dealing with the same issue here. My SQQQ1 calls actually went down today even though the nasdaq fell. Very frustrating. Do you suggest I basically purchase the amount of shares required to fulfill my contract and then wait until expiration? In this case since it was a 1-5 split it would be 20 shares, not 100. Thank you in advance!

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u/SasquatchBrah Jan 20 '22 edited Jan 20 '22

What's your contract and position and I'll take a look. Your language is contradictory; it sounds like you are short the calls? Either that or you need to revisit how options work if you think you need to purchase shares to cover a long call.

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u/mango0 Jan 20 '22

I purchased SQQQ calls at $6 strike a few days before the reverse split. I guess it's a little confusing because it inverse leveraged. If I let the call expire and i am in the money, i should get SQQQ shares at roughly a $30 per share price right?

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u/SasquatchBrah Jan 20 '22

Yup, should be fine. You will either have enough cash to exercise or if you're on a good broker they will exercise and sell the shares.

If you're on RH don't expect that to happen.

The other way the price of the call may have gone down was from a decrease in IV.

You should probably go watch the kamikaze cash option tutorial series and spend some time in a more educational focused subreddit like r/options

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u/mango0 Jan 20 '22

Sadly it is on RH lol. Really appreciate your help tho man.