The ones that got away. What's your Priceline.com
- Thread starter TheFoot
- Start date
Is a split or a reverse split considered a good thing. Is one better than the other or is it pretty much a lateral move?
I don't really think it is a matter of "good v. bad". The way I see it, a regular stock split would be done to entice more investors, by lowering the cost of entry. I suppose that all depends on the float available.
But that is my basic take on it. I know @vanzandt is a stock dude, maybe he has a better read on the reasons.
The way I worded it in my head was reverse 2:1, your two shares become one.
1:2 means your one share becomes two.
Just semantics.
Had NVDA when it was in the $40 range but, I was trading options. My biggest mistake is taking the small profits of $500-$800 on NVDA. Had I given it more time, I would have raked in thousands on each trade. I have no doubt I traded NVDA probably, 20 times, maybe, even more so, that is a lot of monies any way you slice it. Now, the options premiums on NVDA are in the thousands so, I cannot trade it now. Lesson learned. Now, I give my option trades more room and am more patient. I have been rewarded with huge profits now, multiple times. I intend to continue giving my trades time to run up and give me huge returns.
Dont options have a limit on how long you cam hold them before they expire?
Leave it to smallfil to
A) keep people on ignore for years, like a dumbass...
B) start going on about his options trades in a stock forum thread about stock splitting. Like a dumbass. His NVDA shit has nothing to do with what you were asking about, foot.
Reverse splits are usually when the stock price drops so low it's in danger of getting delisted.
BVSN is the prime example, It was around 6-8, moved up to 250+ and had a 3:1 split, so the price became 80-ish. And moved back up to the same area and had another 3:1 split. When the reality began to sink in(Incidentally, BVSN peaked when it was announced it was going in the S&P500.) As it sold down, the price falling horrendously, they had a 1:9 reverse split. Giving back the two 3:1 splits... And later, as it continued sinking, they had a 1:25 split.
So, if you had 100 shares in September, 1999, the next month it was 300 shares...then a few months later(March 1999), another split, and you had 900 shares. 2 years of selling off, and in July, 2002, a 1:9 reverse split and you were back to 100 shares.. That didn't work either, and in October, 2008, a 1:25 split and you had 4 shares. So, suppose you bought in late '98 at $10 a share, you spent $1000. Right after the first split, the stock was at 100, you had 300 shares, you thousand dollars was now worth $30,000. If you held on a little while, a couple days before the second split, BVSN topped at 250ish your thousand dollar investment was now $75,000. The second split came, but it was after the top. Fast forward to July, 2002, you now are back to 100 shares...but they're only worth about $250 bucks. So, you hold and hope...in October, 2008, the final indignity...1:25 reverse split, you only have 4 shares...total value...$40. That's right.
So, that's about that when it comes to splits and reverse splits. Reverse splits means the company isn't doing very well.
BVSN is the prime example, It was around 6-8, moved up to 250+ and had a 3:1 split, so the price became 80-ish. And moved back up to the same area and had another 3:1 split. When the reality began to sink in(Incidentally, BVSN peaked when it was announced it was going in the S&P500.) As it sold down, the price falling horrendously, they had a 1:9 reverse split. Giving back the two 3:1 splits... And later, as it continued sinking, they had a 1:25 split.
So, if you had 100 shares in September, 1999, the next month it was 300 shares...then a few months later(March 1999), another split, and you had 900 shares. 2 years of selling off, and in July, 2002, a 1:9 reverse split and you were back to 100 shares.. That didn't work either, and in October, 2008, a 1:25 split and you had 4 shares. So, suppose you bought in late '98 at $10 a share, you spent $1000. Right after the first split, the stock was at 100, you had 300 shares, you thousand dollars was now worth $30,000. If you held on a little while, a couple days before the second split, BVSN topped at 250ish your thousand dollar investment was now $75,000. The second split came, but it was after the top. Fast forward to July, 2002, you now are back to 100 shares...but they're only worth about $250 bucks. So, you hold and hope...in October, 2008, the final indignity...1:25 reverse split, you only have 4 shares...total value...$40. That's right.
So, that's about that when it comes to splits and reverse splits. Reverse splits means the company isn't doing very well.
Yeah, they do but, 3 months out is a long time and enough to give you huge returns. Just closed call options on EBAY 277.16%, IMMU 141.67% and that is for just 1 month holding. My EBAY call option expiring 07/17/20 so, decided to close it and IMMU to due to price action. NVDA is a very volatile stock and moves 20, 30 points at times. Imagine how much more profit there is. Don't get me wrong, I have losing trades as well LVS, close to losing the entire premium with 5 trading days left. Have 4 other positions with very small losses or medium losses with lots of time left. LVS probably, will end up a loser but, the other 3 calls and 1 put option probably, will still work out based on the stockcharts.
Do you mind me asking, what kind of premiums did you have to put in some of them.