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BCI PODCAST 99: Anatomy of a Reverse Stock Split

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Various corporate like stock splits, and will results in share price changes that require the to adjust option contracts such that buyers and sellers of calls and puts are made whole. This focuses in on reverse stocks splits, ther reasons they are approved by corporate boards and the resulting changes in our option contracts. A real-life example with XOP is detailed.

 

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About Alan Ellman

Alan Ellman loves options trading so much he has written four top selling books on the topic of selling covered calls, one about put-selling and a sixth book about long-term investing. Alan is a national speaker for The Money Show, The Stock Traders Expo and the American Association of Individual Investors. He also writes financial columns for both US and International publications along with his own award-winning blog.. He is a retired dentist, a personal fitness trainer, successful real estate investor, but he is known mostly for his practical and successful stock option strategies.

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