Will options be worthless now?~ ex: 4.50 jan 2013?
The options will be adjusted to reflect the stock split. The reverse split will take away a lot of day trading.
you have one contract now 100 shares worth $450 after split you have 10 shares at $45 that is $450 where do you get worthless from be rational
Worthless as in the odds of the stock still being $45 in 2 years..
NO NO NO your Strike price will be $45.00
What happens if you own an odd lot of options, eg, 148 calls for September?
Your strike price gets adjusted accordingly and now you are looking at the old strike price X 10 as the new strike price