by Anura Guruge
on June 4, 2022
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Well, it is well & truly DONE. The split is HISTORY. We move on; forward & UPWARD.
Amusing that the options have NOT been re-priced as yet. I had heard that some options might NOT be re-priced till Tuesday, June 7, 2022. No big deal.
So, the option I show above is priced at $2,850 — for July 1, 2022. [SMILE. As I tell folks I am NOT GREEDY. ‘Slightly’ (which is very relative (in my case)) cautious when it comes to my sacrosanct cache of AMZN stock. I don’t want to get caught in a quick updraft. So, I give myself a LOT OF RUNWAY. Well, I was ultra-cautious the last few weeks with the split.]
This will get repriced to $142.50.
Yes, the same 20-to-1.
It, however, changes the DYNAMICS of option trading.
Prior to the split I had a $400 buffer between current price & MY CALL.
Post split this buffer is $20.
In terms of % it is still the same; 16%.
But, you can see how & why the dynamics shift. Takes a BIT to get a stock, even AMZN to go up $400 in a day of two.
Not so with $20! Just mentality.
So, I might have to ROLL it forward over the next few days. Need to see what the prices are.
But, I also now have 20 TIMES MORE OPTIONS.
Yes, I can’t wipe the grin from my face. I can get into so much mischief. SMILE.
I only have three addictions & luckily for me they are ALL HEALTHY. Red wine & option trading are two. SMILE.
