by Anura Guruge
on May 24, 2022
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Tomorrow, Wednesday, May 25, 2022, is the Amazon Annual Meeting where the official vote for the 20-to-1 stock split will be taken. I wonder IF they (i.e., the majority of the large shareholders) will change their mind. We have cast our vote — as ‘YES’; but alas we don’t own that much!
The stock is down 25% from the time they announced the split.
Yes, external factors at play. The entire market is down. I expected that, as has invariably been the case in the past, the stock will rally heading up the split as folks scrambled to buy the pre-split shares — though why they felt the need was always a mystery.
There is still time. When the split is formally announced at the meeting I think we will see a flurry of buying. I, yesterday, bought call options for this Friday, May 27. I was banking on a $300 rally. So for now, I am quids in. SMILE.
I have owned AMZN since 2012. SMILE. So, I am not that concerned. PLUS, my main interest with AMZN is COVERED CALL option trading. So, the actual price doesn’t bother me all that much. I doubt whether I will SELL any of my AMZN holdings in my lifetime! I make money with the options. Volatility is good for option trading. SMILE. What can I say.
