How might the reverse split affect the existing options market and open interest for CHSN options?

A  80‑for‑1 reverse split will trigger a standard options‑contract adjustment on the OCC‑cleared CHSN series. All outstanding calls and puts will have their strike prices divided by 80 (e.g., an $8.00 strike becomes $0.10) and the number of shares underlying each contract will be multiplied by 80, so the total notional exposure remains unchanged. The open‑interest count will be carried over verbatim to the new series, but the open‑interest figure will now sit behind far more “mini‑contracts” (each representing 8,000 shares instead of the usual 100). In practice this can compress liquidity: the original series may lose market makers, and the newly created series may start with thin bid‑ask spreads until order flow re‑establishes.

From a trading‑strategy perspective, the split itself is a neutral event for price valuation—share value per holder is unchanged—but the mechanics create short‑term opportunities. Implied volatility often spikes around the adjustment date as market participants recalibrate pricing models, so delta‑neutral spreads (e.g., calendar spreads with the pre‑split series versus the post‑split series) can capture the volatility premium if you anticipate a swift compression. Conversely, be wary of mispricing risk: the new strikes are low‑priced (often sub‑$0.25) where bid‑ask spreads can be disproportionately wide, and the reduced tick size can make execution costly. If you hold existing positions, you may want to roll them into the adjusted series before the effective date to avoid the mechanical conversion, especially if you depend on precise hedge ratios or need to maintain liquidity for large open‑interest positions.