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Sunday, April 13, 2014

Think or Swim ThinkBack error for stock splits

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While backtesting some option strategies in TOS I noticed a problem with the thinkback tool. When a stock price splits / reverse splits, the option prices don't reflect the stock price split. Instead the options are now priced to the new stock price without adjusting for the split. ThinkorSwim is working on resolving the bug.

Example- BIB had a 2:1 stock split 1/24/14.

 BIB 90 strike CALL 1/23/14 = 94.80.

 

 BIB 90 strike CALL 1/24/14 = 3.80

 

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