Tag Archives: 20 to 1

Google (GOOG) Stock Split Is DONE. Stock Will Open Monday $112.77. Stock Down $502 Since Split Announced!

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by Anura Guruge
on July 15, 2022

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Click to ENLARGE. Underlying chart (as ever) from ‘marketwatch.com‘.

GOOG 2022 Stock Split Calendar — Split Date Was Today, July 15.

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So, it has finally happened, 5 months & 2 weeks (164 days) after the announcement, GOOG has at last split — 20-to-1. The split is taking place, across computers around the world, even as I type. Tomorrow morning the new split shares will be in accounts (IF you are lucky enough to have owned GOOG). [Yes, I have owned GOOG, though alas not that many, for many, many years.]

That GOOG went down $502 (18.2%) between the February 1, 2022 and today’s split is hard to believe. Many thought that GOOG will go up as the split approach — as had been the case with previous splits of popular shares. But, alas, this is 2022 with its horrendous (once in 40-year) inflation & the consequent interest rate hikes.

Amazon (AMZN), the other, BIG stop slit of 2022 (to-date), also saw its share price plummeting ahead of the split. It hasn’t done that well after the split either. Even today, nearly 6 weeks AFTER the split, AMZN is BELOW, well BELOW, the split price! This has some GOOG shareholders worried — as they should. To be honest, I am NOT that concerned. At my advanced age, with over 40 years stock investing in the rearview mirror, I understand that the market goes up & down & that it will eventually start rising after a fall & vice versa. Plus, my big thing is OPTION TRADING — actually that is an addiction. Now with this 20-to-1 stock split I will finally be able to do option trades on GOOG. WOW. Yes, I never had 100 shares of GOOG. But, I will after tomorrow. Actually I will have more than 200 … {SMILE} As some of you know, my BIG share holding is in AMZN & I have no regrets. {SMILE}

So, here is to the GOOG 2022 20-to-1 SPLIT. Cheers. Keep your fingers crossed. It will start going up someday — & then it will go up, quite a bit, for some time. That is a given.

I Gave You A Heads-Up That Amazon (AMZN) Share Price Could Drop Below $115 2-Days Ago. Did You Take Heed? Next Stop $99.

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by Anura Guruge
on June 10, 2022

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Click to ENLARGE and read here. Link to original post.

I can’t really gloat (let alone take much credit) since this was SO, SO ELEMENTARY.

IF CPI ran hot, even slightly, the market was going to go down. That is obvious. Inflation is still running high. You can see it all around us. So, I had a fairly good hunch that CPI will come in slightly higher than estimates. It did. The market tanked. QED.

It is good that AMZN has gone down, this much, since Monday’s split. The newbies to AMZN that piled in after the split have to learn their lessons. AMZN stock is volatile & it does not defy gravity.

I suspect that quite a few got caught in a margin squeeze. They borrowed against margin to buy AMZN and with stocks going down they are being asked to repay some of the margin they borrowed. So, they have to sell stock, in a hurry, including their new purchased AMZN shares to raise the cash. That sends AMZN prices even lower.

I will now NOT be surprised if we see AMZN trading BELOW $100 in the next month. SMILE. [Don’t worry about me. Thanks. I am OK. I am an options trader. SMILE.]

It Is GOOD That Amazon (AMZN) Share Price Is BELOW That Of The 20-to-1 SPLIT Price On Monday!

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by Anura Guruge
on June 8, 2022

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Click to ENLARGE. Base chart (as ever) is from ‘MarketWatch.com‘ (with thanks).
Click to ENLARGE.

It is NOT down much, just in the 1% range, BUT this is GOOD.

Why?

1/ It is a salutary lesson to all the NEWBIES piling into the stock, now that they can finally afford it, that AMZN is volatile. It goes up, down & sideways. You get into AMZN for the long-haul. So, this is not much of a drop, but it will make the newbies appreciate that they are not going to see AMZN going up each day.

There is a good chance that AMZN might go down even further, into the $115 range, if Friday’s CPI (Consumer Product Index) number shows that inflation is NOT abating. The market could go down taking AMZN with it. So, it is good to realize that the SPLIT price of $122.35 was NOT, & is NOT, a firm bottom.

Prior to the end of the year we can see AMZN both BELOW $116 & ABOVE $150.

This time next year I expect it to be sniffing at $200. (SMILE).

2/ This small drop gives some a chance to get in WITHOUT thinking they missed the boat. That is good. But, now they will get in understanding that AMZN will go down as well as up.

Chance for folks like us, long-term holders, to NIBBLE. SMILE.

3/ It is GREAT for option traders (like I). SMILE. When you trade options (cannily) it doesn’t matter if the underlying stock goes up or down! You just want it to move in one direction or the other. SMILE.

Amazon (AMZN) SPLIT: I Now Have The New Shares In My Account, Priced At $122.35. (Options Pending.)

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by Anura Guruge
on June 4, 2022

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Click to ENLARGE.

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.

Amazon (AMZN) 2022 20-to-1 Stock-Split: Most Unusual Split Ever!

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by Anura Guruge
on June 3, 2022

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Click to ENLARGE & study. Base graph from ‘MarketWatch.com‘ (with thanks).

The most unusual feature is that the split price was 12% LOWER than the stock price the day the 20-to-1 split was announced. That is highly unusual. The price should have gone up.

As you can clearly see from the above graph the price did, indeed, initially go up. That was what was expected. Then it tanked.

Yes, of course, the tanking of the price was due to the interest rate hikes & the fear of inflation.

It was also interesting that there was no flurry of buying prior to the so-called (nominal) ex-split day, i.e., May 27, 2022. Folks finally appeared to have taken heed of my comments that there is NO ex-split day per se other than today, June 3, 2022 — the last day of trading.

Instead we saw the price go up Tuesday, Wednesday & Thursday of this week. That made sense & was par for the course. It was down 2.5% today, the last day, BUT there was two reasons for that: overall market conditions & folks taking profits knowing that they have a chance to buy the cheaper split stock on Monday.

So, the split did NOT help increase AMZN price — THOUGH we all know that AMZN price would be much lower IF NOT for the split. So, that is a relief.

I have been long AMZN for 10-years now! SMILE. Yep.

I doubt whether I will ever sell my AMZN holding! I option trade against my stock. As of Monday I will have 20 times MORE OPTIONS — quite literally! I am sanguine. I am cool. I keep on smiling. I am sure that this time next year AMZN will be around $180 IF not higher. Mark my word.

Amazon (AMZN) NOW SPLIT Will Start Trading Monday, June 6, 2022, At New Price Of $122 — $123.

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by Anura Guruge
on June 3, 2022

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Click to ENLARGE & study. Base graph from ‘MarketWatch.com‘ (with thanks).
Click to ENLARGE & study. The SPLIT is DONE. DONE!

It is DONE. Done. Price can’t change. The final close on Friday, June 3, 2022, was somewhere in the $2,447 to $2,451 range.

20-to-1 split. So, you get 19 additional shares for each one you own, BUT the price goes down by 1/20th. Hence, the $122/$123 price.

That is pretty attractive. You can now own a 100 AMZNs for $12,000. That is a bargain.

We will see MAJOR down says. Interest rates hikes are far from done. So, AMZN will still take some major knocks. But, by this time next year it should be close to $180. Mark my word.

Those of us who own AMZN should see the post-split shares in our accounts on Saturday, June 4, 2022.

Amazon (AMZN) 20-to-1 Stock Split: Only The LAST STEP, i.e., Actual Split Left.

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by Anura Guruge
on May 27, 2022

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Click to ENLARGE & study.
Click to ENLARGE. Base chart from ‘marketwatch.com‘ (of course).

Compared to other high profile stock splits, Amazon’s much anticipated 2022 split, so far, has been very muted & insipid. It went up a fair amount since the split was formally approved on Wednesday, but not by that much.

So, two of the lead-up steps to the split, i.e., the approval & the NOMINAL ex-split day (i.e., May 27) are NOW history. Only June 3 stands between the old shares & the split ones. The split will take place, after the markets close, on Friday, June 3, 2022. The split shares will start trading when the markets open on June 6, 2022.

To add a bit more spice, Monday, May 30, is a holiday, Memorial Day. So, there is only 4 days left of trading prior to the split.

Despite my admonitions many will continue to believe that it is now TOO LATE to buy AMZN stock that is going to get split. That is NOT true. You can keep on buying them till 4pm (Eastern) on Friday, June 3.

Amazon (AMZN) Shareholders APPROVE 20-to-1 Stock Split; So It Is ‘Go-Go-Go’, May 27, June 3 & June 6.

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by Anura Guruge
on May 25, 2022

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Click to ENLARGE & read here. Here is the link to the ‘GeekWire‘ original.
Click to ENLARGE. So, May 25 HURDLE is cleared. Split approved.

Well, at today’s Amazon Annual Meeting the shareholders FORMALLY voted in favor of the 20-to-1 stock split. That was expected. We had cast our vote — as ‘YES’ (by proxy) a few weeks ago.

So, the VOTE is out of the way.

Now it is GO-GO-GO & it is a very fast & compressed schedule.

AMZN stocks will split, after trading, on Friday, June 3, 2022. That is the GOLDEN DAY. You can continue to buy pre-split AMZN shares until 4pm (Eastern) that Friday. That is a given.

The split shares will appear in accounts as of Saturday, June 4, 2022. Same as option expirations. They expire on Friday & you see the expirations on the Saturday.

The split shares will start TRADING Monday, June 6, 2022 at 9:30am (Eastern).

So, that is it.

AMZN went up, a bit, today. Will most likely go up on Thursday & Friday too.

Amazon (AMZN) Sure NOT Acting Like There Is A 20-to-1 Stock Split Just 9-Days Away.

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by Anura Guruge
on May 24, 2022

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Click to ENLARGE. Base chart (with thanks (as ever)) from ‘marketwatch.com‘. Annotations are mine.
Click to ENLARGE.

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.

DO NOT Bother To Buy Amazon (AMZN) Shares AHEAD Of The May 27, 2022 SPLIT-DATE — It Is Meaningless.

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by Anura Guruge
on May 22, 2022

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There is NO ‘ex-dividend’ (or ‘ex-split’) date
for stock splits.

Let me say that AGAIN. There is NO ‘ex-split’ date for stock splits.

Do you want me to repeat it AGAIN, or has it sunk in? (I sure hope so.)

Yes, Amazon, brokerages & the media will talk about the ex-dividend (or ex-split) date — which is likely to be May 27, 2022.

That date is MEANINGLESS.

You can CONTINUE buying Amazon shares, & GET THE 20-to-1 stock split, till 4pm on May 3, 2022.

Trust me on this. I have played this game, very successfully, with TSLA in 2020. See below.

Click to ENLARGE. Click to ENLARGE & read here.

Call your brokerage and ask them.

They will confirm.

You just can’t have an ex-split date with a stock-split. Why? Because folks can’t end up owning unsplit shares.

Any AMZN shares you own on June 3, 2022 have to split. Doesn’t matter if you bought them that morning.

Think about it.

SMILE.

I am trying to help you make some money.

Click to ENLARGE.

May 27: If the vote goes through, that Friday, May 27, will be the NOMINAL EX-DIVIDEND (i.e., EX-SPLIT) date. It means diddly. Repeat. It means DIDDLY.

But, brokerages will claim that you need to own AMZN on May 27 in order to get the SPLIT. That is garbage. If you buy AMZN on June 1 what are the brokerages (& for that matter Amazon) going to do? Tell you own a special class of OLD, unsplit shares!

There is NO EX-SPLIT DAY. You can continue buying AMZN till the actual SPLIT DATE.

June 3: AMZN will split, 20-to-1, AFTER trading on this Friday. You will see the SPLIT shares on Saturday June 4.