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Schwab has not yet indicated the split on account status (# of shares or price), but you get a message on the welcome screen indicating that the split is occuring this weekend (CATapiller is also mentioned, also splitting this weekend). But yes, the INTCW warrants, as well as all outstanding options (puts, calls, leaps, etc.), will also split, and their striking price will be adjusted, so that in the absence of any price move, the net effect would be no effect. Example, INTCW (which is essentially a deep in-the-money call): the number of warrants that you have doubles, the striking price (exercise price) cuts in half to about $21/warrant (sorry, I don't remember the exact striking price of the current warrant and it isn't worth looking it up). As to what the market does, that's anybody's guess, but I'm hoping that by the end of the day we see essentially $80/$60 or so on INTC and INTCW, respectively. Could even be higher, or it could go lower if Intel has a down day. Personally, I wish the split was not so close to the earnings announcement. Some of the split impact could be lost, I feel. |
