What Apple’s stock split means

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The stock split in Apple caught many off guard, but it really has no effect on current positions.

The 7-for-1 split means that, come June 9, AAPL investors will have 6 more shares for every 1 they hold at a price that is 1/7 of current levels. So if you held 100 shares right now at $567.28, you will have 700 shares priced at $81.04.

The same simple transition will be true for option holders. The strike price will be divided by 7, so they will be “non-standard” and could look a bit messy. Traders will also get 7 times the number of options they hold.

For example: If you held 10 calls at the 630 strike, you end up with 70 calls at the 90 strike.

— The Option Specialist

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About the Author: The Option Specialist