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Strategies & Market Trends : Options-Upcoming Stock Splits

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To: hpeace who wrote (269)3/22/1997 2:01:00 AM
From: Doug Rawson   of 415
 
Steve, I concure. I am inching my way through McMillian and find
it to be most complete. Wade quotes a statistic that during a 3 month
period one of his guys followed all the 2:1 & 3:2 splits and found
that of the +/-95 announcements +90% were up from announcement to
split. I say no way. He goes on to say that if you had bought stalk
in all the above that including the loosers you would be up some
enormous amount. (buying on announcement, selling on spit day)

I traded a few options on paper and thought I was ready. I made nice
% on NB even getting in late (real $), but have lost on hasbro (HAS). Ouch.

Note: I'm writing call out past spit, then selling if up a couple of $.

I have track several on paper during the last month, checking $ daily,
and have found that few do as well as wade suggest.

Now planning to stick with CC and only a few Option-On-Stock-Splits
with solid companies - like ROST, MSFT, NB.

I no can do on sell puts - too small of fish. :-[

happy trades, doug
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