AAPL stock split...which stock to trade now?

Discussion in 'Options' started by heavenskrow, Jun 17, 2014.

  1. So I am still a newb to options. Started last January doing mainly directional trades. Found a niche in AAPL, great gain potential even in a few points.

    Now with AAPL's stock split, I am assuming the reward potential/cost is not worth it anymore? What do I need to trade to mimic what AAPL was providing prestock split??? Should I try to find a stock that is $500 or more? Any stocks you guys reccomend?
    Thanks
     
  2. newwurldmn

    newwurldmn

    Why is the opportunity gone after the stock split?
     
  3. Well, for one thing, vola has dropped from >23 pre-split (6/6/14) to under <20, post-split.
     
  4. well im assuming the cost of commission would increase significantly.
    Let's say I was buying 5 contracts for $1000 each.
    Now to use that same amount of value, I would need to buy up more contracts(more commission)to have a similar trade value.
     
  5. newwurldmn

    newwurldmn

    Are commissions that big of a deal relative to your pnl volatility?
     
  6. newwurldmn

    newwurldmn

    23 was the wrong price to begin with. so many people buying vol ahead of the split.

    but OP implies is the share price "size" that's affecting his ability to profit on AAPL.
     
  7. FXforex

    FXforex

    Q: AAPL stock split...which stock to trade now?
    A: AAPL


    AAPL's June21 ATM call options (91.430) doubled from Friday to Monday on a modest 1% AAPL gain, and they still had 4 days to expiry.


    :)
     

  8. That may be, but HV is running at 15%. The stock is simply not moving. And yeah, 7x the comms is an impact.
     
  9. FXforex

    FXforex

    Commissions are a moot point. If you could trade AAPL options before the split you can trade AAPL options now.


    :)
     
  10. stfu you insufferable twat. Any order is 5-7x more costly. For your one lots it's of no consequence. Kill urself. I trade a couple thousand contracts a day... so it's a huge impact. And no, I have not traded AAPL since the split. Anyone who traded AAPL pre-split has reduced their trading in AAPL (notional-terms).
     
    #10     Jun 17, 2014