Why can't I open a new position in an Adjusted Basket option?

The OCC, or Options Clearing Corporation, is an organization that acts as both the issuer and guarantor for U.S. securities options and futures contracts listed by its participant exchanges. By acting as guarantor, OCC ensures that the obligations of the contracts it clears are fulfilled. OCC operates under the jurisdiction of both the SEC and the CFTC…

If a long stock option or index option finishes Out of the Money it will not be auto exercised by the Option Clearing Corp (OCC) and the long option will expire worthless. For non-U.S. options, please refer to the Options Exercise page of our website for information on how the different clearinghouses will handle the exercise…

When a company undergoes a reverse stock split, options on that stock are typically adjusted to reflect the new share structure. Here is what you need to know about option adjustments after a reverse stock split:

1. Adjustment Process:
   • Options may be adjusted by the Options Clearing Corporation (OCC), which is responsible for standardizing and regulating options contracts…

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…