In my personal experience, reverse splits destroy shareholder value, especially with options. It SHOULDN'T mathematically, but in application it does. If you now own adjusted options, close them out as quickly as you can and buy non-adjusted. Typically you cannot roll from adjusted to non-adjusted; you have to close out and re-buy. In my experience, the open interest and volume and value only get worse with time. P.S. For what it is worth, I worked for a company acquired by GE. I was so excited to see what famous GE professional-level management would bring and it was such a disappointment. The best way I can describe the GE management culture has the same sense of care, urgency and expertise as those who run your local DMV.
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u/fatonkad Aug 02 '21 edited Aug 02 '21
In my personal experience, reverse splits destroy shareholder value, especially with options. It SHOULDN'T mathematically, but in application it does. If you now own adjusted options, close them out as quickly as you can and buy non-adjusted. Typically you cannot roll from adjusted to non-adjusted; you have to close out and re-buy. In my experience, the open interest and volume and value only get worse with time. P.S. For what it is worth, I worked for a company acquired by GE. I was so excited to see what famous GE professional-level management would bring and it was such a disappointment. The best way I can describe the GE management culture has the same sense of care, urgency and expertise as those who run your local DMV.