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> In theory it doesn't make much of a difference Options markets are where this has the most impact. In order to sell a covered call, I need to own at least 10
by MichaelApproved 13y ago
> In theory it doesn't make much of a difference
Options markets are where this has the most impact. In order to sell a covered call, I need to own at least 100 shares of a stock. A stock priced at $500 or higher (in the case of GOOG) makes it harder for a smaller investor to participate in the options market. Splitting the stock price makes it possible for a little guy to purchase options based on their stock holdings.
- wiredfool 13y agoApple started trading mini options a little while back, they're on blocks of 10 shares.
- minimax 13y agoHave you traded the minis? I just looked after reading MichaelApproved's comment and the quotes I saw for the minis were way outside the standard contracts.
- encoderer 13y agoWell they're not usually "way outside" but yes, they are usually more expensive. Also, most brokers add a per-contract fee so that also adds to your cost basis. If you're looking right now, it's possibly because AH trading is much more volatile.