By Lawrence G. McMillan
VXX will be reverse split 1-for-4, before trading begins on Wednesday, August 23rd. It is a bit ironic that VXX is finally starting to rise so the reverse split might not be necessary, but this was probably in the “works” well before the recent announcement date.
For existing VXX options, the striking price will remain the same, but the “shares per contract” will drop to 25 from 100. Those existing VXX options will henceforth have the underlying symbol VXX2.■
This article was originally published in the 8/18/17 edition of The Option Strategist Newsletter.
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