Discussion in 'Options' started by insaneinvestor, Aug 14, 2007.
Anyone else loading up on calls for RIMM 3 for 1 split next week?
Why do you necessarily assume the split news will lead to even more run up in the price?
When something trades over $200 per share and then I can get it for +- $70, that sounds like a good time to get in if you ask me.
Why does anyone assume anything?
I call it speculation more than assumption.
No. You're going to get a situation where you have "professional selling" versus "retail buying". The pros prevail each time. Besides, it would be a good time to fill in that gap too. We'll see how it plays out.
What exactly does that mean?
Think it's ' net order imbalance indicator ' aka NOII. I am using Nasdaq NOII level II and it seems quite accurate though.
How do I use this NOII you speak of?
"I can get it for +- $70 "
Buy 33 shares right now and you can have the same position as 70 shares, post split
be that as it may,
70 shares at $254 = $25,146
33 shares at $762 = $25,146
I am of the mind that if I have 70 shares of something, and lets just say it goes up 20 points, I will make 1,400 as opposed to the 33 shares of the same thing that goes up 20 points making me 660.
If I am wrong about that (the facts not the speculation) I don't know what I will do, but it will be drastic. . .
Therefore, I speculate.
Anyone who would buy it at $68 or pay $6,800 for 100 shares post split would simply by 33 shares at $206 now.
After the split they will have about 100 shares at $68 if it happend right now. SO whether you buy 100 shares post or 33 pre, you are in the boat.
The split changes nothing.
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