1. You
are Invited to the Festival of Traders
Lean powerful
trading techniques used by professional traders:
Tuesday April
8 and Wednesday April 9, 2014
4:00 – 7:00
p.m. Eastern Time each day. Use one sign up to enjoy the entire event totally
free:
The
NeverLossTrading presentation is on April 9 at 6:15 p.m. ET
2. Making
Complicated Matters Simple
What does the
Google stock split mean for your trading?
With the
stock split on March 27th, the Google share price was roughly halved and from
now on, we have two trading tickers with roughly the same numbers of shares
exchanged per day.
GOOG: Even so the prior ticker symbol was carried forward;
GOOG represents the newly issued Class-C share with no voting rights. As a result,
historic data are only reaching back to 3/27/2014.So far, this symbol does not
carry weekly options; however, at the basis of monthly options , at our
preferred strike prices, GOOG had a 5-times higher option volume than GOOGL this
far.
GOOGL: The new issued symbol relates to the prior
existing Class-A share with voting rights, which carries all historic data,
reaching back to August 2004. Weekly options are issued. So far GOOGL had the lower
option volume.
GOOGL 4-Hour NeverLossTrading HF Chart
If you are a
Google shareholder, your account was updated as follows:
Say you held
100 Class-A Google shares. At one vote per share, that entitles you to 100
votes. After the stock split, you now hold 100 Class-A shares with the symbol GOOGL and 100 Class-C shares with the Symbol
GOOG. Class-A shares keep their one
vote, while Class-C shares have none. So while your number of shares doubled to
200, you still have 100 votes.
A super-voting
Google Class B share also exists, however, it does not represent a stock we have
to worry about as traders: The Class-B shares secure the control of the Google
founders who hold 56% of the voting rights. By now being in the position from
now on to only issue Class-C shares with no voting rights, the Google founders
basically put a floor to keep the control of the company.
In the
trading days since March 27, 2014, both shares showed a unilateral share price
development, when we assume this continues, we are acting as follows:
·
For
day trading weekly options use GOOGL (all history).
·
For
position trading, use monthly options use GOOG (historic date from March 27,
2014 forward).
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