I have a question for ETF options people. One week ago I bought 100 contracts of USO July $5.50 at $.10 each. A $1000 investment. I know, I’m an idiot. A few days later the stock creep down 10% and my option went down to $.07 and I was down 30%. Ok this is normal. The next day the ETF had a reverse split 8/1. The option price was gutted to $0, but today it’s valued at $.01 in my E*TRADE account and its asking me to roll or close. The value is $100 after one freaking week. $900 loss on a reverse split. That’s a shocking loss considering the stock hasn’t fluctuated 10% in either direction. The stock has gone up since the split. The value isn’t off by much from when I started, but my options have been blown up. What am I missing?
