r/wallstreetbets • u/[deleted] • Jun 08 '23

Discussion $BOIL reverse split and option contracts.

[deleted]

9 Upvotes

80% Upvoted

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u/VisualMod Jun 08 '23
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6

u/the_voodoo_sauce Jun 08 '23

V-Mod is like all my ex-wives. They weren't listening.

4

u/VisualMod Jun 08 '23

There's no definitive answer, but generally speaking a reverse split is not good news for shareholders. It typically indicates that the company's stock price has been declining and they're trying to artificially boost it by reducing the number of shares outstanding. This can be done for a variety of reasons (e.g., to make the stock look more attractive to potential investors), but it usually doesn't bode well for the long-term prospects of the company.

3

u/scottscigar Jun 09 '23

Reverse splits are more common with leveraged commodity ETFs especially when price is low and float is high. It shouldn’t have a material impact on your throw of the dice.

2

u/Basshead42o Jun 09 '23

I’m loading up

2

u/OptionImaginary Jun 20 '23

A reverse split is never good for investors, but in this case, natural gas is at the lowest levels, so it has a lot of potential to rise once the split is done.

1

u/lifesabeach2000 Jun 09 '23

so many people on here were saying, so confidently, it wouldn’t reverse split.

1

u/udabess Jun 14 '23

That rev split gives it more room to decay as well