To prepare… let’s look at 3 stock splits. One that has happened and two that will happen.  

General Electric Corp (GE) split into GE and GEV (General Electric Vernova) yesterday.  You get 1 share of GE and .25 of GEV for every 1 share owned before the split.  This was a stock dividend with a new entity.  GE shares fell the value of the issued company.  4 shares of new GE + 1 share of GEV = 4 Share of OLD GE.  GE new is up $10 today and gave me a decent close in a Ticker Show GE call calendar today.

Stock number 2 is Chipotle Mexican Grill Inc (Ticker: CMG) and it’s about to split 50 for 1.  That means owners will get 50 shares for every one they own and the stock will drop by 50x. When CMG announced the split, the stock rocketed $100.  1 share of CMG for $2895 will become 50 shares for $57.90.  I should have a trade for that around the split or just before. Stay tuned for that as a reader of Option Pit Exclusive.

Mind you….these are two big swings in both companies and nothing material has changed.  Nothing!!!!!! Yet the new split prices bring opportunity.

You just have to know where to look… which brings me to UVXY…

UVXY splits Apr 11th

Proshares Ultra VIX short term futures ETF(Ticker: UVXY) will split 1 for 5 next week.  UVXY is unique because it making reverse splits because of the nature of the products it owns.  What I mean by that is… they’re forced to Reverse Split it so it keeps ANY semblance of value. Next week will be the 12th time that UVXY has split since its inception in 2011.