Cardlytics completed a 1-for-10 reverse stock split, and the Options Clearing Corporation adjusted outstanding listed options as a result. Effective June 8, 2026, existing CDLX options became adjusted CDLX1 contracts rather than standard 100-share CDLX options.
This article is for information and education only. It is not financial advice, investment advice, or trading advice. Options trading involves significant risk and is not suitable for all investors. Read the site’s risk disclosure.
What Happened
Confirmed facts
The core mechanics are straightforward:
- Cardlytics said its reverse split became effective at 5:00 p.m. Eastern Time on June 5, 2026.
- Cardlytics common stock began trading on a split-adjusted basis on June 8, 2026.
- Nasdaq said the post-split common-stock CUSIP changed to
14161W303. - OCC Information Memo 59112 said the option root changed from
CDLXto adjusted symbolCDLX1. - OCC said each adjusted contract now delivers 10 post-split CDLX shares.
- OCC also said the new multiplier remains 100 for premium and strike-dollar purposes.
That last point is the one options traders need to slow down and parse. The deliverable changed, but the contract did not become a standard 10-share retail option. It became a non-standard adjusted contract.
Estimated figures from the company filing
Cardlytics said it had 58,078,634 common shares outstanding as of June 1, 2026 and that the reverse split would reduce that to approximately 5,807,863 shares, subject to adjustments from cash paid in lieu of fractional shares.
That share-count math comes from the company’s filing, not from OCC. It is useful context, but it is separate from the option-adjustment terms.
How The CDLX1 Adjustment Works
The easiest way to think about CDLX1 is this:
- before the split, one standard contract represented 100 CDLX shares
- after the split, one adjusted CDLX1 contract represents 10 post-split CDLX shares
- the strike price shown in the chain does not get multiplied by 10 on screen
- the economic exposure per share changes because the deliverable shrinks
Why the chain can look misleading
OCC said the underlying price for CDLX1 will be determined as:
CDLX1 = 0.10 x CDLX
That means a broker or data feed may show the adjusted option chain against an underlying reference price that looks like one-tenth of the post-split stock price. This keeps the legacy strike framework usable for adjusted contracts, but it can confuse traders who are looking at the stock quote and the option chain side by side.
Effective strike math
For adjusted contracts like CDLX1, a practical way to think about the per-share strike is:
effective per-share strike = listed strike x 10
Why? Because exercise value is still based on listed strike x 100, but the contract now delivers only 10 shares.
Example:
- a listed
$1CDLX1 call still requires$100in aggregate strike value - exercising that contract delivers 10 post-split shares
$100 / 10 shares = $10effective per-share strike
So a $1 adjusted call is not economically equivalent to a standard post-split $1 call on 100 shares. That is the main trap.
If you need a refresher on intrinsic value versus displayed strike labels, see How options pricing works: intrinsic value vs time value and In the money, at the money, and out of the money options explained.
Why This Matters For Options Traders
1. Adjusted contracts usually trade differently from standard contracts
Once a contract becomes adjusted, it often becomes less liquid than the standard series that existed before the corporate action. That can mean:
- wider bid-ask spreads
- less displayed size
- harder price discovery near the mid
- more slippage when trying to exit
That is an interpretation based on how adjusted options often behave in practice. It is not a guarantee for CDLX1 on every broker or exchange venue.
2. Broker handling can differ
Some brokers are cautious with adjusted series and may limit what customers can do with them, especially if new standard contracts eventually list alongside the adjusted ones. The exact handling is broker-specific and was not established in the primary materials reviewed here.
In other words, “adjusted contract” is confirmed. “Your broker will mark it closing-only” is not confirmed from the source documents and should be checked directly in the platform you use.
3. Assignment and exercise can create odd-lot stock positions
Assignment risk does not disappear because the contract is adjusted. If a short CDLX1 option is assigned, the resulting stock movement is based on a 10-share deliverable per contract rather than the standard 100-share lot.
That matters operationally because odd-lot positions can change how traders think about:
- hedge sizing
- exercise decisions into expiration
- stock inventory after assignment
- cleanup trades if liquidity is poor
4. Mixing adjusted and future standard series can create mismatch risk
If standard post-split CDLX options are listed later, traders should not assume they are interchangeable with CDLX1. An adjusted 10-share deliverable and a standard 100-share deliverable are different instruments, even if the ticker and strike labels look related.
That sounds obvious, but reverse-split adjustments are exactly where position mismatches and bad spread assumptions happen.
What Is Interpretation, Not Confirmation
Several takeaways are reasonable, but they should stay labeled as interpretation rather than fact:
- Reverse splits are often associated with listing-pressure situations in lower-priced stocks.
- Adjusted single-stock options often become less liquid after the corporate action.
- Many traders misread apparent moneyness because they focus on the listed strike rather than the adjusted deliverable.
Those statements fit common market behavior, but they are not the same thing as an OCC rule term or a company filing fact.
Common misunderstandings to avoid
“My old low strike call is now deep in the money”
Not necessarily. On an adjusted reverse-split contract, the listed strike can understate the effective per-share strike if you ignore the smaller deliverable.
“The contract multiplier became 10”
No. OCC’s memo kept the new multiplier at 100 for premium and strike-dollar purposes. The deliverable changed to 10 shares.
“Adjusted options are basically the same as standard post-split options”
No. They can trade differently, settle differently in practice, and create different position-size outcomes at exercise or assignment.
“The option symbol change predicts what the stock does next”
No. The symbol change to CDLX1 is a contract-adjustment mechanic. It does not provide a directional signal.
What Is Still Uncertain
Several practical questions remain open:
- when exchanges and brokers will list or support new standard post-split CDLX series
- how much liquidity CDLX1 will retain after the adjustment
- whether any broker will restrict opening transactions in the adjusted series
- how long CDLX stock can remain above Nasdaq’s minimum bid threshold to cure the deficiency
That last point matters because Cardlytics disclosed it received a Nasdaq notice for failing to maintain the $1.00 minimum bid price requirement. Regaining compliance depends on subsequent trading, not on the split alone as a one-day event.
Bottom Line For Options Traders
The main story is not “Cardlytics reverse split.” The main story for derivatives traders is that legacy CDLX contracts are now adjusted CDLX1 contracts with 10-share deliverables and chain math that can look deceptively cheap if you read the displayed strike at face value.
That makes contract mechanics, not market opinion, the first priority. Before trading or managing any adjusted series, confirm the deliverable, effective strike logic, assignment implications, and broker handling. That is more important here than trying to read direction from the corporate action itself.
This article is not financial advice, investment advice, or trading advice. Options trading involves risk and is not suitable for all investors.
Sources
- OCC Information Memo 59112, “Cardlytics, Inc. - Reverse Split Option Symbol: CDLX New Symbol: CDLX1” -
https://infomemo.theocc.com/infomemos?number=59112 - Cardlytics, Inc. Form 8-K filed June 3, 2026 -
https://www.sec.gov/Archives/edgar/data/1666071/000162828026040351/cdlx-20260603.htm - Nasdaq Equity Corporate Actions Alert #2026-388 -
https://nasdaqtrader.com/TraderNews.aspx?id=ECA2026-388 - Cardlytics proxy materials describing the reverse-split authorization range -
https://www.sec.gov/Archives/edgar/data/0001666071/000162828026024446/cdlx-20260409.htm
