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What Is the Risk of Holding an Option through a Stock Split?

The risk is misinterpretation of contract adjustments and reduced liquidity.
Greeks.Live22.11.25

What Is the Risk of Holding an Option through a Stock Split?

The primary risk of holding an option through a stock split is the potential for misinterpretation of the contract terms and the resulting adjustments. While the option's value is preserved, the non-standard contract size or strike price can lead to execution errors or reduced liquidity.

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