OCC Memo #50708 Regarding GME 4:1 Stock Split Option Chain

  1. I like to buy ITM and ATM calls. Does that hurt the price just because I initiate a transaction involving a sale of a call ATM or ITM?

  2. Maybe the real genius of Ryan Cohen was to get us to yolo our life savings into 69’s. I think I should be able to afford 420 $69 -Jan

  3. I assume the same would be true of CSPs? For example, if I sold an August 12th 100P, post split I would have 4x 25Ps?

  4. It would seem so. I sold 12 Jan 24 100 strike contracts for 60k. Feeling pretty good about this now, can’t see a post split price of under 25 ever.

  5. So then I don’t necessarily have to buy shares by the 14th, I can just buy calls let’s say the 15th by close and they’ll be split into 4 and I can exercise with less capital?

  6. Well you'd want a strike that expires after the split date. But yes, that one contract would become four (but at a quarter of the strike), so you could exercise just one of the four you have now.

  7. I was reading how splitting up the chain would've hurt the SHFs because they too would have had to re buy in. Would make sense that the occ would want to protect them..

  8. Gamma squeeze for months to come now, I'll have four Jan 2024 $20.'s with every intention of exercising imagine how many ITM calls will get exercised?

  9. I was just thinking even if they turn off the buy button again they can't turn off the exercise button. I love to think someone would have to pay me an obscene amount of money to let go of my hundred DRS shares so that I can turn around and exercise the option to buy them back at $20. and DRS them again.

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