Stock Splits
From time to time, companies 'split' their stocks, which can result in profitable trade opportunities.
Stock splitting is essentially increasing the number of shares in a company, but making each share smaller. For example, a company may have 1 million shares which are trading at $40 each - the value of the company is therefore $40m.
To increase the liquidity in their stock, they may decided to do a 4:1 stock split, in which case they would now have 4 million shares.
Assuming the value of the company hasn't changed, it's still worth $40m, therefore the shares should theoretically be worth $10 each. But that's where we can make money - after a split, the stock price doesn't always go to where it 'should', and a profitable trade can be made.
The difficulty is knowing which stocks are splitting, when they are splitting, what the new ratio is, and if there are actually options on that particular stock so we can place a trade.
You don't need to worry about that anymore - we do all the work for you. Each week we will identify upcoming stock splits, and share that with the members of our online Stock Splits newsletter.
You can then choose exactly which trades you want to take, and place them on your own account.
Membership is available from a very inexpensive $49 per month, so signup today!