English
Back
Open Account
多家公司紛紛拆股，迎來佈局好時機？
玩賺牛牛
joined discussion · ·

Tesla has risen for ten consecutive days! How to operate before and after the stock split?

On March 28, Tesla stated on Twitter that it will ask shareholders to vote to authorize the issuance of additional shares to achieve a stock split at this year's annual shareholder meeting.
After the news was released,$Tesla (TSLA.US)$ it rose more than 6% before the market opened and accumulated more than 8% after the market closed. This is Tesla's 10th consecutive trading day since March 14th, and the cumulative increase has reached 27%, re-approaching the $1000 mark.
Futubull Classroom
What is a stock split?
A stock split, also known as share split, refers to splitting stocks with a high face value into stocks with a lower face value.
When is a stock split necessary?
Simply put, when the price of a stock is too high, it will affect the trading volume and purchasing desire of the stock. Therefore, the company splits the stock to increase its liquidity-after the stock is split, the shareholder’s equity remains unchanged, the company's total market value remains unchanged, but the holding position increases.
What are the benefits and risks of a stock split?
A stock split is beneficial to expanding the investor base, attracting more investors to participate, increasing trading volume and liquidity. The more investors, the higher the stock price is expected to rise. Therefore, stock splits are generally considered a direct bullish factor that helps to push up stock prices. According to data, since 1980, 3 to 6 months after the announcement of share splits by SP500 component stocks, the performance has been better than the index, with an average return rate of 25.4%, while the index during the same period was only 9%.
At the same time, Tesla's high stock price provides early investors with a space for high-level arbitrage, which is consistent with the stockholder...
However, at the same time, Tesla's high stock price provides early investors with a high-level arbitrage opportunity, just like mooers.Beware of the risks brought by short-term pullbacks.。
Click here to learn more about stock split tips
Strategy interpretation
According to historical data and institutional opinions, we have compiled the following strategies for investors to refer to.
Strategy 1: Focus on holding positions in ETFs containing Tesla.
Reviewing Tesla's stock price, after the last stock split announcement (August 2020), it surged 37% within a week, and once again surpassed $1000 per share in October of the same year.
If you want to capture this uptrend, add Tesla to your investment portfolio, but are worried about the large fluctuations in individual stocks that your heart cannot bear?
Then you must know about the following ETFs with the highest Tesla holdings!
● $ProShares Ultra Consumer Staples (UGE.US)$
Mainly tracking the Dow Jones Consumer Index, with Tesla holdings accounting for 20.21%.
+4.93% Daily increase on March 28th.
● $Consumer Discretionary Select Sector SPDR Fund (XLY.US)$
A well-established ETF with a market capitalization exceeding one hundred billion, its tesla holding positions account for 20.14%.
+2.67% Daily increase on March 28th.
● $Fidelity Covington Trust Msci Consumer Discretionary (FDIS.US)$
Providing exposure to non-essential consumer goods in the US, with tesla holding positions accounting for 14.99%.
+2.30% Single-day percentage increase on March 28th.
By searching for Tesla in Futubull, you can find the top three ETF symbols with significant Tesla holdings, allowing experienced investment institutions to help you 'get on board' with Tesla!
On March 28, Tesla stated on Twitter that it will ask shareholders to vote to authorize the issuance of additional shares to achieve a stock split at this year's annual shareholder meeting. After the news was released,$Tesla (TSLA.US)$ it rose more than 6% before the market opened and accumulated more than 8% after the market closed. This is Tesla's 10th consecutive trading day since March 14th, and the cumulative increase has reached 27%, re-approaching the $1000 mark. Futubull Classroom What is a stock split? A stock split, also known as share split, refers to splitting stocks with a high face value into stocks with a lower face value. When is a stock split necessary? Simply put, when the price of a stock is too high, it will affect the trading volume and purchasing desire of the stock. Therefore, the company splits the stock to increase its liquidity-after the stock is split, the shareholder’s equity remains unchanged, the company's total market value remains unchanged, but the holding position increases. What are the benefits and risks of a stock split? A stock split is beneficial to expanding the investor base, attracting more investors to participate, increasing trading volume and liquidity. The more investors, the higher the stock price is expected to rise. Therefore, stock splits are generally considered a direct bullish factor that helps to push up stock prices. According to data, since 1980, 3 to 6 months after the announcement of share splits by SP500 component stocks, the performance has been better than the index, with an average return rate of 25.4%, while the index during the same period was only 9%. At the same time, Tesla's high stock price provides early investors with a space for high-level arbitrage, which is consistent with the stockholder... ... view. The translation of the word bullish means favorable, the translation of the word stock is stocks, and mooer means Futubull.
If you are bearish on Tesla, you can focus on hold positions including Tesla in the short ETF:
●$Tradr 1X Short Innovation Daily ETF (SARK.US)$
This ETF is specifically designed to short Tesla with a heavy weight, by the famous investor 'ARKK'.
-4.02% Single-day percentage increase on March 28th.
Due to its diversified investment nature, ETFs can more effectively mitigate investment risks.
Click here to learn more about ETF investment knowledge.
(Filter criteria: Search for "tesla", and find ETFs in recent holdings that include Tesla and rank in the top three in terms of proportion.)
Strategy 2: Focus on individual stocks in the Tesla concept sector.
In addition to Tesla stocks, the Tesla concept sector has also steadily risen with this wave of growth. The symbols contained in the concept sector may also be worth investors' attention.
By searching for "Tesla" on Futubull, you can click to enter the "Tesla Concept" to view the details of individual stocks under worldwide market sectors related to the Tesla concept.
On March 28, Tesla stated on Twitter that it will ask shareholders to vote to authorize the issuance of additional shares to achieve a stock split at this year's annual shareholder meeting. After the news was released,$Tesla (TSLA.US)$ it rose more than 6% before the market opened and accumulated more than 8% after the market closed. This is Tesla's 10th consecutive trading day since March 14th, and the cumulative increase has reached 27%, re-approaching the $1000 mark. Futubull Classroom What is a stock split? A stock split, also known as share split, refers to splitting stocks with a high face value into stocks with a lower face value. When is a stock split necessary? Simply put, when the price of a stock is too high, it will affect the trading volume and purchasing desire of the stock. Therefore, the company splits the stock to increase its liquidity-after the stock is split, the shareholder’s equity remains unchanged, the company's total market value remains unchanged, but the holding position increases. What are the benefits and risks of a stock split? A stock split is beneficial to expanding the investor base, attracting more investors to participate, increasing trading volume and liquidity. The more investors, the higher the stock price is expected to rise. Therefore, stock splits are generally considered a direct bullish factor that helps to push up stock prices. According to data, since 1980, 3 to 6 months after the announcement of share splits by SP500 component stocks, the performance has been better than the index, with an average return rate of 25.4%, while the index during the same period was only 9%. At the same time, Tesla's high stock price provides early investors with a space for high-level arbitrage, which is consistent with the stockholder... ... view. The translation of the word bullish means favorable, the translation of the word stock is stocks, and mooer means Futubull.
● $Magna International (MGA.US)$
One of the largest auto parts manufacturers in North America, providing components to companies like Tesla.
+0.22% Single-day increase on March 28th
● $Avery Dennison (AVY.US)$
Providing labeling and packaging solutions for companies in the upstream of Tesla's supply chain
+0.21% Single-day increase on March 28th
● $Modine Manufacturing (MOD.US)$
Providing thermal management solutions for Tesla's battery coolant suppliers
+0.99% Daily increase on March 28th.
(Selection criteria: search for "Tesla", click on the US stock market - "Tesla Suppliers", filter the top three individual stock symbols by trading volume as of March 28th)
Strategy Three: Skillfully use options, hedge against Tesla stock
In the case of holding or planning to hold Tesla, cleverly using options can effectively hedge against short-term pullback risks. Whether you are bullish or bearish on Tesla, options can help investors better cope with potential "highs and lows".
For guidance on trading options on Futu, please refer to the meticulously prepared "Nanny-level Guide" by Mooer."Nanny-level Guide"
As of March 29th US Eastern Time, the top three contracts in the Tesla options ranking based on trading volume:
● TSLA 220401 1100.00C +362.78% March 28th daily increase.
● TSLA 220401 1200.00C +289.71% March 28th daily increase.
● TSLA 220401 1150.00C +360.23% Daily increase on March 28th.
(Selection criteria: In the Tesla individual stock options quote page, the top three options contracts in terms of volume)
In order to improve the capital efficiency of customers, Futu recently added functions to reduce margins for various options combinations such as 'Spread Strategy' and 'Cross-Market Strategy' for investors. In addition to supporting the covered call combinations since last year, as of March 2022, Futu has supported the reduction of margins for 5 categories and 17 types of options combinations, saving option clients over 0.1 billion USD in margin every day!For more information on margin discounts, you can click here to learn more.
Tesla is planning to split its stock again, click here to see what everyone is saying~
Risk Disclaimer: The above content only represents the author's view. It does not represent any position or investment advice of Futu. Futu makes no representation or warranty.Read more
Lol
1
Angry
2
Heart
12
Emm
3
Thumbs Up
121
Respect
3
886K Views
Report
Comments (24)
Write a Comment...
24
142
364