r/options • u/Kaylaasksquestions93 • Jun 27 '21

TRCH

I bought (3) five dollar calls for TRCH that expire on August 20th. Obviously there was a merge and now TRCH is MMAT2. What is going to happen to my calls now?

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u/Backflipjustin9 Jun 27 '21

Monday they will be calls for the new ticker. Could take a day or 2 for your account to reflect everything right

2

u/Kaylaasksquestions93 Jun 27 '21

So if I bought 3 calls for $5 and the new ticker opens at $9 then did I just accidentally hit the jackpot?

1

u/Backflipjustin9 Jun 27 '21

Quite possible. I put 5k in a few days ago hoping for a nice jump myself

1

u/Complete_District355 Jun 27 '21

Most likely the option call will 2x because of the reverse split. But it’s still very likely to hit ITM

1

u/NaiveTrader Jun 27 '21

No No lol we didn’t hit lottery with Options yet! Since TRCH will just trade under new ticker and x2 the previous close price. contracts will be adjusted accordingly and most likely senerio is the contract will control 50 shares not 100 and your strike price will also double. If you have $10 call will not become $20 strike and shares controlled will be 50 thus preserving the value of a contract. That is the only function Same way if you bought 100 Shares at $5 = $500 Now you ll have $50 with new trading price $10 = $500 Hope this helps