Hi all. I have a question I'm having trouble getting an answer to. Someone on another board pointed out the reverse split recently for these midcaps direxion etfs. It would be great if someone had experience or knowledge on this subject.

FAS is going to have a 1 for 5 reverse split on July 8.

I'm short FAS.

For easy math, let's say I'm currently short 500 shares, thus my current obligation is to buy back 500 shares.

I'm assuming that if I hold the short position, after the split I will simply be short 100 shares, thus that will be my obligation to cover.

Is my assumption correct?

I posed the question to the FAS board, but only one reply was helpful and by their answer I think she may have been a little off on what I was asking.

My assumption above makes logical sense to me, but just because something makes sense to me, does not make it reality.

Thanks if you know the facts regarding this.