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Strategies & Market Trends : Three Amigos Stock Thread

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To: milesofstyles who wrote (5527)6/2/1998 10:46:00 PM
From: Ken W  Read Replies (1) of 29382
 
Miles,

2 for 1 splits:

A favorite trading tactic is to wait for a stock to split and play the call options as the stock retraces to the pre-split high. The history of this play are long and very profitable. DELL is a perfect
example. Was at 81 about Dec. went to 94, announced a 2 for 1 went to 140, split and went back to 98. Calls on all of these price moves would have made a small fortune for someone with capital. CAT does the exact same thing about every 5 years.

Ken W
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