Out of my Microchip Stock Splitting Calls

Most readers know I have a strategy for splitting stocks. 2 Days ago Microchip (MCHP) announced a 2:1 stock split. One of the buy-in points with my stock splitting strategy is at the announcement.

Normally after the initial stock pop there is a little profit taking. I might have jumped out a little early but with the geopolitical situation in the world I decided to not carry this position into the weekend when I have a nice profit.

I plan on getting back in after the weekend or after a little pull back.

I got into the position 2 days ago with the stock at $151.50 and got out with the stock at $160.00

8/25/21 – Buy to Open 2 MCHP 1/21/21 $150.00 C @ $13.00 

8/27/21 – Sell to Close 2 MCHP 1/21 21 $150.00 C @ $18.80

 Profit +$1160

This 2 day trade gave me a 44% return.

This will just be the beginning of my trades with MCHP. You will be the first to know when I get back in. If you don’t want to watch this closely like me I think buying the June, 2022 Calls would be very safe and a money maker. If you want to gamble a little more and spend less money I also think the Jan, 2022 is safe and will be a money maker. The stock splits on Oct 12th.

Email me any questions.

 

Successful trading,

Steve

The Options Coach