Options-Upcoming Stock Splits Message Board

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Strategies & Market Trends : Options-Upcoming Stock Splits

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To: SAF who wrote (310)	5/30/1997 7:32:00 AM
From: Steven R. Michaud	of 415

Steve, You are correct in your assumption. When a stock splits, the option also splits and the strike price is reduced accordingly (just like the stocks). This is not advise, but merely food for thought.. Why would you exercise the call option after in increase in the underlying stock? 1) Want to keep the actual stock as a core holding. 2) Expect the stock to continue to rise and the option will expire soon anyway. Why would you want to sell the call option before expiration? 1) Do not want the underlying stock as part of your holdings. 2) Are a day trader. 3) Want the cash immediately (the next day) in your account. There are various ways in which you can handle your account. You must find that out for yourself. Personally, I buy/sell the call options on splits. Again, this is a personal choice and I do not advocate or propose you do it my way or any other way. Here are some powerful links Stock information centers... dailystocks.com stockstuff.com Stock Split links.. street-watch.com vlcn.com (I have this company's e-mail service) and finally the guru of stock splits wadecook.com Good luck and I hope it helps. Steve

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