I have recently made a lot of money with FRX (forest Lab) with the purchase of puts and calls.
This stock has faced 2 gaps in a 30 days period, which is great when you are long option.
On the 8th, there will be a split of 1-2. Intuitively, I consider it bullish for the stock and bullish for the implied volatility (as a lower stock figure may increase daily ranges : investors may tend to keep the same daily range but with a stock trading half of the price, so twice more volatile !).
My query to any of you is where I could find a list of past splits to study split impacts on stocks and implied vols
Ciao
This stock has faced 2 gaps in a 30 days period, which is great when you are long option.
On the 8th, there will be a split of 1-2. Intuitively, I consider it bullish for the stock and bullish for the implied volatility (as a lower stock figure may increase daily ranges : investors may tend to keep the same daily range but with a stock trading half of the price, so twice more volatile !).
My query to any of you is where I could find a list of past splits to study split impacts on stocks and implied vols
Ciao
