PCJeweller announced record date for bonus shares issue on June 7th and the record date was 7th July that is tomorrow. I wanted to go long in futures yesterday but for some reasons I didn’t. As a swing trader I usually close my positions the same day or the next day. I normally do not see any news and directly go for the trade. But afterwards I analyze and today while analyzing I saw that PCJeweller was down 50% and upon further digging up I came to know that PCJeweller announce bonus share issue in the ratio 1:1. So I have 2 questions
- I want to know what would have happened to my open contracts PnL? Since I bought at 500 on 5th July and now it is down to 250. Would I incur huge loss or will there be some adjustments done automatically on futures/options?
- Also why the split occured today? the record date was of tomorrow i.e. 7th July