by Anura Guruge
on April 30, 2022
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Alas, we are NOT huge (and as such, major) Amazon shareholders. And it this case I am not using the Royal ‘we’. I & my youngest kids (at my behest) own Amazon stock — and have done so for many years. Between us we own a ‘few’ — alas, not millions or even thousands, but more than ‘xxx’ (& that is as specific as I will ever be in public).
So, we voted today for the 20-to-1 split. Given my 20 years of active investing, I am a past master of stock splits. I have gone through them all, both normal splits & reverse splits. I understand how they work better than some & I even have some secrets I no longer readily share as to how to make the most PRIOR to a split.
The BIG THING to I is the ADDITIONAL option trading. Many of you regulars know that option trading is one of my few addictions. A 20-to-1 split INCREASES my option trading scope 20-fold! If I own ‘xxx’ shares, I have the ability to trade ‘x’ options given that (‘proper’) option trading has to be done in terms of 100 share blocks. So, owning ‘xxx’ shares give you the chance to sell/buy ‘x’ options.
But then you get a 20-to-1 stock split. Now, rather than owning ‘xxx’ shares, I will own 20 times more. That means I can now play around with 20x options! WOW. That is exciting. So, much scope.
Yes, we also own GOOG & TSLA — though not as much as we own AMZN. So, this Summer is going to be like an early Christmas for I. WOW. SMILE. Actually GRIN. GRIN. GRIN.
