Hello,
I wonder about if you would buy 1 PUT on VXX (18 JAN 2019) with 610 days to go.
As VXX is going down and we assume that this happens until 2019.
What is the risks in this. For example if we buy 1 PUT today with VXX at: 15.74
and the VXX does a reverse Split 4 to 1 in a few days, so the price of VXX is about 60.00.
What happens in this case to the PUT, how will the PUT be valued and are there any other risks with holding the original PUT?