Free Stock Split Notices       Investing Q & As       Glossary

- Market slips out quietly, holding the week’s range.
- More solid economic data, holiday season a breakout for the consumer.
- Trying to hang on at the 50 day MVA.
Click Here To Read Full Story.

Try "The Daily" with no risk for 2 weeks!

2) Stock Splits

Playing stock splits can be very profitable, but it takes know-how.

Our stock split service focuses on three main types of plays:

1) pre-announcement (where we forecast an upcoming split prior to the company making the announcement); 2) pre-split (these plays are made in the days leading up to the actual split day); and 3) post-split plays (plays made after the actual stock split where the stock is showing continued or renewed strength).

We play pre-split plays as short-term plays. We get in when the technical indicators show us things look right, grab as much as we can, and get out, always being conscious of resistance and support. These stocks are highly volatile at this time, and can turn on you quickly. Don't let good profits disappear. Watch for turns, especially when a stock trades in a wide range and finishes off its high. That is a sign these stocks often give you that they are running out of steam. We usually get out and ask questions later. We can always get back in. We like to play in the money calls, preferably two strike prices in the money as this usually gives us a greater delta (the percent an option will mover versus the stock's movement). We prefer deltas of 75 or better. This means if the stock moves 1 point, the option should move three-fourths of that point. That means up or down.

Remember, wait to see the stock start to move up. Don't just blindly make a play and don't try to guess tops and bottoms. We can look at indicators to give us a clue as to what will happen, but we need the stock to confirm it for us. Here's a pre-split play to watch and our current analysis.

Chart by StockCharts.com

JAH (Jarden--$41.25; +0.78; no options): Rubber & plastics. Splits 3:2 on 11-28.
Company Profile
STATUS: Test 18 day MVA. JAH has set up again, preparing to make a move higher as it heads into its split week. With a potential seasonal advance in the market this week, we are looking to move in on a move over the 10 day MVA on some continued rising volume. A good pre-announcement mover for us, and now we look for another nice pre-split move as it started up off the test of support at 40, moving on rising volume Friday.
Volume: 124.4K Avg Volume: 202.181K
BUY POINT: $41.42 Volume=205K Target=$47.48 Stop=$40.23
POSITION: - Stock (no option chain).

Click here for more information on our Stock Split Report!