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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 165.69+1.5%2:54 PM EST

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To: Percival 917 who wrote (49373)11/12/1999 9:26:00 AM
From: Voltaire  Read Replies (5) of 152472
 
Hi Joel,

Any time you have a 4 for 1 split, the exponential aspect could certainly be a factor because we do not know what day it will split and how close to options expiration and the games the MM's will play. When some people go from 2,500 shares to 10,000 shares and the stock moves 5 points down by the MM's, their nerves can get a little taut, and taut nerves beget taut nerves. Do not think the MM's don't know this. All I am saying is another PSYCHOLOGICAL FACTOR comes into play here. And all of this will be played out in the 3 to 10 days after the split.

This scenario is particularly applicable to options. I am not so sure that a lot of first time option players realize the numerical exposure they will have after a 4 for 1 split. Just want those that might not think about this to be aware. I would like to think that is one of the reasons we post here.

V.
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