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Strategies & Market Trends : Options-Upcoming Stock Splits
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To: Freda Kjolhede who wrote ()5/29/1997 7:59:00 PM
From: SAF   of 415
 
Freda,

I am new to this thread and very new to options. However, I am looking into trying out options with a stock that is splitting
2-for-1 on Monday. Computer Task Group. My question is this.

If I bought 1 June 60 call contract before the split,
would I own 2 June 30 call contracts after the split?

If the stock goes up and the purchase price of the contract goes up,
what is the best way to make the profit? Do you exercise the option and sell the common immediately, or do you sell the option contract?

I know this might be out of line for this thread, but I'd appreciate the information. I'd like to add, that most of the Y2K stocks that have split, usually have an announcement and a run-up in the weeks
following the split. I'm think that this could be the same way.

Any thoughts?

Thank you,

Steve
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