How can I tell whether my option is in-the-money or not after a corporate action?

Question

Accepted Answer

If you have an option position and there is a corporate action the Options Clearing Corp (OCC) will adjust the open option contracts to reflect the change in the underlying. You can see the value of an "Adjusted Basket" underlying by adding the OCC's new symbol your trading screen. As an example the OCC adds a number to the stock symbol so after a corporate action UVXY would change to an adjusted basket symbol UVXY1. You can then create a market data line for the new adjusted basket symbol to see if your option is in the money or out of the money. Add the new adjusted basket symbol like UVXY1 to a watchlist then select Stock from the contract selection menu pop up. A window will populate explaining that this is an indicative value calculated from the components of the adjusted option contract and is provided on a best efforts basis. Click OK to close the window. You will now see a market data line with the indicative value displayed in the "Last" Price column.