Options Trading Tutorial

Option Strike Price and Stock Split?

if a stock price split before this option expires will the strike price for this option also be adjusted to whatever the split ratio is??

Public Comments

1. Yes. You can see examples of previous adjustments at http://www.cboe.com/tradtool/contracts.aspx
2. The exchange will adjust the strike price and number of shares for existing options. All new options will be for 100 shares of post split stock. This can lead to weird listings because they will trade side by side for a few months.
3. To answer your question, yes.