On January 30th Walmart (WMT) announced a 3 for 1 stock split. The stock will be splitting on Monday, February 26th (actually, after the close on Friday, February 23rd). Traditionally I like to play a stock that is splitting. And I’ve had great success over the years in doing so. There are 5 points I enter a trade on a splitting stock: 1) Rumor 2) Announcement 3) Two weeks after the announcement 4) Two to five days before the split 5) Post split (sometimes the stock takes a dip a few days after the split. If it does I jump in).<\/p>\n
Today, with the stock at $175.10, I bought a 2 contract Call which is entry point #4, two to five days before the split, with the splitting date of February 26th. I plan on holding this position until the Ex-Split-Date, which is the day the stock starts trading at the new adjusted split price (Monday, Feb 26th).<\/p>\n
I bought a Call that doesn’t expire until March 28th for protection. If the stock doesn’t go up as planned I have a month until expiration. I would like to get out on Monday or Tuesday and get back in for a post split position if I like the way the stock is reacting to the split. This position would have an Expiration Date going out 3 or 4 months.<\/p>\n
I bought a 2 contract Call, however, on Monday, because of the 3:1 split, I will own a 6 contract position.<\/p>\n
Keep an eye on Walmart. Let’s hope I can make a quick 40 or 50% on my investment.<\/p>\n
<\/p>\n
Successful trading,<\/p>\n
Steve<\/p>\n
The Options Coach<\/p>\n","protected":false},"excerpt":{"rendered":"
On January 30th Walmart (WMT) announced a 3 for 1 stock split. The stock will be splitting on Monday, February 26th (actually, after the close on Friday, February 23rd). Traditionally I like to play a stock that is splitting. And I’ve had great success over the years in doing so. There are 5 points I […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-13962","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-3Dc","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13962","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=13962"}],"version-history":[{"count":3,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13962\/revisions"}],"predecessor-version":[{"id":13967,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/13962\/revisions\/13967"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=13962"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}