3 Great Ways to Play Splits
AFTER THE SPLIT ANNOUNCEMENT - Often times, the stock will develop a pattern of dropping back three to ten days after the announcement. This provides you with an opportunity to take advantage of the split announcement. If you are playing calls this is when you buy what they call “ dipping undervalued calls “. Many times you will have 2-4 chances to make this play before the stock actually splits. Just make sure you carefully observe the chart patterns to confirm that the stock is pulling back and that there is a turn back to the upside. Establish your exit points by looking at the prior highs. PAY DATE - Historically, this play has very high odds of success and profit. If you are playing options, this play has you buying the stock or option the day before the split. Pay careful attention to the stock pattern during the week of the stock split pay date. Hopefully, you should be observing an upward pattern or at least a sideways channeling. Your best odds are to hold the option throught the split ( note: you will now have twice as many options since they also split ). Sell your options within 2-3 days of the split, your odds are better if you purchase the closest month of the “ out-of-the-money “ call. And please remember that there will always be other plays, so if the stock is tanking one or two days before the pay day, don’t play it! Wait for the next one to come along that meets these guidelines . POST SPLIT PLAY - Usually, the leaders in their industry group, such as Dell Computer, Intel and Microsoft, those companies that we the general public and trading institutions most easily recognize, have a greater chance of moving upward than those that do not split. Here again, observe the charts for a long dip and profit taking before you buy long term “in-the-money” options. If you already own the stocks you can write ( sell ) “out-of-the-money“ calls to collect premiums and have good odds of being “called out“ with a nice capital gain.
Other Trading Tips Articles
Fibonacci Numbers and the Golden Ratio - 3 Tips for Greater Trading Profits In this report, we will look at the history and background of Fibonacci numbers and The Golden Ratio. We will then outline three specific money management tips that can help increase your profit potential.Support and resistance levels are an important consideration for most traders to help identify entry and exit points when trading. Fibo ...A Dozen Tips for Starting an Import/Export Business Thinking of starting an import/export business? Jennifer Henzel, a Certified Import/Export Trade Professional offers these tips for getting started:1. Many countries have set up offices (Consulates or Embassies) in foreign countries to promote the exporting of their goods. The Consulates will supply you with industry directories and more. ...How To Turn A Five Minute Presentation Into A $200,000 Marketing Bonus How do you increase your visibility by focussing on 'high pay off' activities to build your profile and profits?Speaking in public is the fastest way to attract, win and even retain more profitable clients.It is a 'one to many' activity that delivers an enormous return on investment for your time and effort.It also builds yo ...Silver Jewelry History That Became Legend Part III – The Lydian Trite Asia Minor And Its History And LegendsDuring the 6th and 5th Centuries before Christ, the Lydian empire with its impregnable capital of Sardis perched high on Mount Tmolos changed world history. Contrary to the neighboring Phrygians, who had been in Anatolia since just 1200 B.C., the Lydians were an ancient race whose origins were ...Planning a Single Parent Vacation With Your Kid More than most people, single parents need to look after their psychological and emotional well-being. Not only do the parents need it themselves, but more importantly, their children need it as well. A happy mom or dad makes a great parent. Similarly, a miserably busy dad or mom who can’t take care of his or her own personal emotional health wi ...Options Trading - You Need To Know This About Trading Options What is options trading? Well quite simply, with options trading, the taker (or buyer) is buying a right to do something from the writer (or seller). There are different types of options trading, with stock options and commodity options being the most commonly used. Options trading can be used in any market where the prices of items fluctuate; t ...Consider Timeshare Purchase Only A Vacation Investment On a recent vacation I had a first-hand opportunity to see how the timeshare world operates and it wasn't a pretty picture. I've never been a big fan of timeshares as a real estate investment and so I decided I'd better get the low-down on what they're all about and how consumers or vacationers get sucked in to the timeshare world. We were payin ...Never Lose Money in the Stock Market If you are under 50 years of age and have not lost money in the stock market I don’t think you will find this article interesting. Why? Because you still think you can make a killing in the market. Until you have lost a lot more this method of investment will not interest you.Dad and Mom can try to get the kids to pay attention, but it is ...Investor or Trader... Which Are You? Most market participants consider themselves to be "investors." But if you look at a list of the really big winners on Wall Street, you will see that most of those who make big profits, list themselves as "traders."By "big profits" we mean doing better than the S&P 500 Index or Nasdaq 100 Index by a substantial margin over any three year ...Energies Update – Did You Make Big Gains On Recent Break We Did! But Where not here to crow on about that, instead we want use this move as an illustration of how to time a trade correctly. In all markets when they go right great and sure we piled up big profits, but markets can make us all look stupid and they do regularly!Here we want to go over two ways to cut the risk of trading in energies (and other ...Day Trading The Extreme Sport Of Investing The rewards are incredible for those that do it right, but for those who make enough mistakes it will take everything they have and still not be satisfied. Day trading is the practice of buying and selling securities and other financial options. These transactions are usually completed within the same day. Options that are typically traded in ...Gold-Safe Investment Gold has always been known as a number one investment option. But is it really that profitable to invest in gold? The gold prices differ each year. Some years are favorable for investments, some are not. Gold has always been considered a safe investment. However, in 1980 the closing price was $ 593.8 per ounce; in 2004 it was $ 442.1 per ounce. ...Executive Summary Preparation Tips An Executive Summary is a more finely tuned version of your full blown Business Plan. Some people get the two documents confused and others use the two terms interchangeably. There is no special set of rules for preparing either document although most people would probably agree that the Executive Summary should be contained ...Stock Options Trading Speculative activity is carried on stock exchanges through options trading. An option in the stock exchange terminology means ‘a right.’ In an option deal, therefore, the right to buy or sell a certain security within a certain time and at a certain price is purchased from a dealer. It may be an option or right to purchase securities, when it wi ...Hackers Target Online Brokerage Firms In Latest Cyber Scam Every time the public thinks it has a handle on cyber crime, hackers come up with something new to throw into the mix. Reports this week name the newest targets for cyber criminals: online brokerage houses, which have lost millions of dollars in an online fraud that is apparently the latest in the world of hacker couture. Reports from o ...Investment Strategies – Choosing Between the Specialist and the Generalist It is common knowledge that in business you need to focus. How would this -- focus -- relate to different investment strategies?To grow into a successful stock trader you do not need an academic background, although it might help. Imagine that you start concentrating on one stock, for example an oil company. This is not the easiest choice ...Tips and Tricks on Student Consolidation Loans Though these loans are great for getting hold of the benefits portrayed above, there are many things that must be taken into account when undertaking student debt consolidation that may reduce or boost these benefits. Since knowledge doesn’t take up space, read on and make sure to remember these tips and tricks so you can make the most out of yo ...Forex Trading Hours Foreign Exchange (FOREX) Trading is the buying and selling of international currencies. Because the trading parties can come from every corner of the globe, there are various time differences that need to be taken into consideration when you engage in trading.The first trade market begins in Tokyo, Japan, at 7:00 pm Eastern Standard Time ...Why Do Pets Have Bad Breath? Pet owners probably agree that their cat or dog may not have the loveliest breath. Imagine how your mouth would smell if you did not brush your teeth for months at a time! Not a pleasant thought, is it? It is important to pay attention to the dental health of our pets, just as we take care of our own teeth, so we can try to prevent gum disease, ...How To Choose a Good MLM or Network Marketing Company? You've heard many horror stories about MLM /network marketing programs. But what you are really hearing about are stories relating to illegal programs or pyramid schemes. Basically, pyramid schemes have no real, viable and worthy product. Obviously, you do not want to participate in such schemes. You want to be associated with a high quality ...New Business - Trading Equity for Cash You awake in the middle of the night with a business idea that will change the world. The only problem, of course, is you need money to get the business moving. What do you do?Investors and EquityPractically every economy is built upon the backs of small businesses and entrepreneurs. Every day someone comes up with an idea that wil ...Day Trading Basics A means to survive, an avenue to progress and vista to exchange thoughts, ideas and feelings… ‘Trading’ is perhaps as old as human existence on earth. It all began when the primeval man began swapping small useful items with each other in order to live and fulfill many of his needs. The time that followed saw a persistence and enhancement of thi ...10 Sizzling Ways To Ignite Your Profits 1. Create a memorable logo and slogan to brand your business on the internet. When they see your slogan or logo it will remind them of your business.2. Multiply your marketing all over the internet by creating free bonuses for other business' products. You just include your ad somewhere on the bonus.3. Offer to buy advertising spac ...Market Timing – Getting It Right For Huge Profits! Market timing is a misunderstood concept and it’s a fact that most traders time their entry points incorrectly and lose.Follow the simple tips below and you will find you can enter trades with better market timing, when the odds are in your favour and profitability is at its highest. Use the simple tips below and get better accuracy in yo ...7 Tips for Small Business Success Do you own a small business and want to make it an absolute success?Then you’ve come to the right place!You see, I’ve had the opportunity to work with many fellow small business owners and I’ve been able to help them make millions of dollars in increased revenue in my time with them.Over that time I’ve found that most small ...Bicarbonate of Soda: The Magic Ingredient? For well over a century professional cooks have known that adding bicarbonate of soda to cooking vegetables enhances their color; greens turn bright green and old carrots look like new.It’s a chef’s trick that has crept into some recipe collections and often appears in lists of cooking tips and hints. It is not a good practice.The ...Forex Trading Tips Why do hundreds of thousands online traders and investors trade the forex market every day, and how do they make money doing it?This two-part report clearly and simply details essential tips on how to avoid typical pitfalls and start making more money in your forex trading. Trade pairs, not currencies - ...Ten Tips for Working at Home 1. Maintain regular working hours and stick to them.2. Get a separate phone line, computer and printer that are only used for your business.3. Keep your workspace separate from your living space. Ideally it should be visually and acoustically separate from the living quarters.4. To gauge your progress maintain goals and to ...Penny Stocks - Turn Your Pennies Into Dollars We've all heard about the investor how bragged about his 100% or 1000% return on a stock or about the guy who made it rich by investing in small caps, undiscovered stocks that made it big. In theory, it seems to be too easy. Invest in a couple of penny stocks, then sell them when they move up. Unfortunately, it is too easy. Too easy to lose mone ...Top 7 Tips to Ditching Sales People If you are in a small business you probably hate all the salespeople constantly harassing you and I especially hate it; how about you? If you run a retail business and put a sign on the door that says; No Soliciting; that only stops about half of those little bastards.Some people think that whatever they are selling is so darn important t ...Take Home The Money For short term trading, not much beats momentum, where a stock is on fire and we simply hop on for a short ride and jump back off. This is the life blood of short term holds whether it be a pre-earnings run, a split run, or a news driven pure momentum play. One of the biggest faults that can be made in this game is hanging on too long.One ...Top Ten Tips For Mending Your Relationship 1. Take responsibility for your own actions. There is nothing more guaranteed to prolong conflict than excuses of the type: “If you hadn’t done X, then I wouldn’t have done Y.” If you own your own stuff, then you leave your partner free to do the same.2. Apologise at the first possible opportunity. The “S” word, sincere ...Your Talents For a Free Cruise It’s true! You can trade your talents for free (or substantially discounted) luxury cruises. Cruise line management is very interested in keeping their passengers happy at all times. This goal is a bit more challenging on days when the ship’s at sea. To address this issue the cruise lines offer all manner of onboard activity. Many o ...10 Top Tips To Successfull Dropshipping Many entrepreneurs have found success in the dropshipping industry. For those who aren’t familiar, dropshipping is a business term used for a situation where a seller sets a retail price for an item, collects the payment, sends the wholesale cost to a dropshipper and the item ships directly from their warehouse. In most cases, the seller never ...How to Trick Out Your MySpace Profile MySpace is great because of the huge amount of freedom you have to change your MySpace profile. Using the profile tools and methods below you can trick out your profile to make it interesting and keep people coming back.Some of the cool features you are able to put on your MySpace profile are games, cursors, layouts, clocks, surveys, and ...
|
