gekko13

Barrington Stays Positive on Sirius

Relmor or Anyone, I am in a unique situation here. I have 100 Jan 09 2.5 Calls. Right now they are worthless. But if there is a reversal, does that mean that I salvage my position somewhat? I'm assuming that if there is a 1:20 split, I will now have 5 Jan 09 2.5 Calls. Am I correct? Because if I am then I'll actually make a little killing. A 1:20 will bring the SP up to 10 let's say, which will gross me 5k (I got each contract for $150). It sounds too easy so I'm assuming the new strike price will be $50 (20 x 2.5) instead. Someone enlighten me since this has never happened to me before.