Nikola Corporation, known by its stock symbol NKLA, has announced a reverse stock split at a ratio of 1-for-30, set to take effect on June 25, 2024. Following the split, the option symbols for Nikola will change from NKLA to NKLA1, 1NKLA to 1NKLA1, and 2NKLA to 2NKLA1. The new contract multiplier will be 100, meaning premium or strike dollar extensions will be adjusted accordingly. Each contract will deliver three new Nikola Corporation common shares and a cash payment in lieu of approximately 0.3333 fractional shares. The cash portion of the deliverable will be settled once the cash in lieu amount is determined. The underlying price for NKLA1 will be calculated as 0.033333 times the price of NKLA until the cash in lieu amount is established. Settlement of the NKLA component...Show More

Nikola Corporation, known by its stock symbol NKLA, has announced a reverse stock split at a ratio of 1-for-30, set to take effect on June 25, 2024. Following the split, the option symbols for Nikola will change from NKLA to NKLA1, 1NKLA to 1NKLA1, and 2NKLA to 2NKLA1. The new contract multiplier will be 100, meaning premium or strike dollar extensions will be adjusted accordingly. Each contract will deliver three new Nikola Corporation common shares and a cash payment in lieu of approximately 0.3333 fractional shares. The cash portion of the deliverable will be settled once the cash in lieu amount is determined. The underlying price for NKLA1 will be calculated as 0.033333 times the price of NKLA until the cash in lieu amount is established. Settlement of the NKLA component will be processed through the National Securities Clearing Corporation (NSCC), while the Options Clearing Corporation (OCC) will delay settlement of the cash portion until the cash in lieu amount is finalized. The OCC has issued a disclaimer stating that the information provided is an unofficial summary and should not be solely relied upon for investment decisions.