This is my first post here.. I appreciate anyone who can offer insight!
I hold non-standard GSAT options (GSAT1) from before GSAT’s **15:1** reverse split.
**Position:**
Pre split, I sold **Jan 16, 2026 $2.00 calls**
Post split, GSAT trades around **$60** (≈ $4 pre-split), so calls are deep ITM
According to the [OCC GSAT memo](https://www.miaxglobal.com/sites/default/files/alert-files/GSAT_Reverse_Split_ExchangeChange_56023.pdf): each GSAT1 contract now delivers **7 shares**, rounded up from the expected **6.667** shares (100 ÷ 15).
I see why a contract can’t deliver fractional shares but I’m confused on the exercise price adjustment.
Per the memo:
**GSAT1 = 0.07 GSAT**
This implies an effective strike of **$28.5714**, not $30
The problem I perceive from the **call writer’s perspective**:
**Pre-split**:
Deliver 100 shares to receive $200 ($2.00 × 100 per contract)
**Post-split:**
Deliver **7 shares** to receive $200 ($28.5714 per share x 7 per contract)
But economically, I would expect to deliver **6.6667 shares** to receive $200.
Because the share count is rounded up to 7 while the strike price is adjusted down, I’m effectively giving up the value of 1/3 of a share per contract.
This creates a practical issue where I sold covered calls on my GSAT position pre-split, and after the option adjustment, my position is no longer fully covered. I have to buy additional shares just to stay covered and realize the same $200 per contract. It appears to me I am losing value purely based on the adjustment mechanics. Am I missing something? Would appreciate any thoughts and happy to be corrected…