Corporate events & settlement
How does a reverse stock split of 1-for-10 alter the strike prices and share deliverables of open options?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
In a 1-for-10 reverse split, OCC multiplies the strike price by 10 and divides the deliverable share count by 10, keeping the contract's total economic value unchanged despite the new, higher per-share price.
How it works
Standard reverse or forward splits in ratios not evenly divisible into round lots trigger OCC adjustments to both strike and deliverable shares rather than simply repricing the option symbol.
An example
A $10 strike call deliverable for 100 shares becomes a $100 strike call deliverable for 10 shares after a 1-for-10 reverse split, preserving equivalent notional exposure.
Risk & limitations
Adjusted post-split options often become non-standard and illiquid, trading under special symbols that can confuse order entry if a trader selects the wrong contract.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.