There are no ifs, ands or buts about the fact that stock splits give traders and investors an edge over the rest of the market…
If you need a quick refresher, stock splits are when companies increase the number of their outstanding shares to lift the stock’s liquidity and lower the share price. This is typically a good sign that the company is doing well.
It’s also great for options traders, making contracts far cheaper to buy. I mean, have you looked at how much it costs to trade options in Amazon, which goes for about $2,500 a share right now?!
We have a ton of stock splits coming up this summer in companies like the aforementioned Amazon, Kinetic, Shopify, Alphabet, Tesla and Nintendo…
With that in mind, I want to show you what I think is the best time to buy when a stock splits, and more on the ones that are coming up next…
The Best Time to Buy When a Stock Splits
The first stock split this summer is on Friday, June 3, in technology company Amazon.com Inc. (Nasdaq: AMZN). You may have heard of it…
The company is planning a 20-for-1 stock split, which means every share of its stock will be split into 20 new shares, dividing that $2,500 share price I mentioned by 20, bringing it down to about $125 a share.
This is Amazon’s first stock split since the dotcom boom, and its goal is to increase the stock’s options liquidity as I mentioned above.
But here’s the key…
The best time to buy when a stock splits is on the first trading day following the split, or on a pullback.
That’s because stock splits cause shares to trade higher because the cheaper share price entices new buyers.
In fact, stocks going through a split tend to move three times on average as much as stocks that don’t during the same period of time…
So check out my short video above to learn more about why that is, and the best time to buy when a stock splits!
Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video, and see what other trade opportunities we’re paying close attention to!
P.S. I hate to be the bearer of bad news, but nothing will change until the Federal Reserve starts printing money again…
It’s just the facts because we can expect more downward pressure until then.
But if we know the stock market is likely to go lower, how do we take advantage of it?
The economic tightening is causing big money to rotate out of tech and speculative growth companies and into recession-proof sectors like Energy, Staples, and Utilities because they tend to do great when the rest of the market is going down.
Look, these stocks are pushing all-time highs… and you won’t hear about them on Fox Business or CNBC.
I’d hate for us to miss out on this incredible opportunity to front-run the rest of the market, so be sure to click this link now!
