ETF Spilts Today - EEM, IWM? IYR?

Written on July 24, 2008 by OptionsRopeaDope

Today was an important day, the day iShares announced cplits for many of thir ETFs - and probably a bit frustrating for income traders. These are scheduled to split 3 for 1:

EEM, IWN, IJR, EFA

And these are supposed to split 2 for 1, although for IWM I don’t see this reflected yet:

IWM, IGE, IJK, IJH, IJJ, ICF, IJS, IYR

(As of this morning, I don’t see this reflected in IWM.) For options holders (like me), the technical handling of those options is that now EEM options represent 300 shares of stock instead of 100, so, they will stay at the same price. For reference sake, My 130 calls actually reflect a price of 43.33.

Looking forward, EEM and IWM are especially popular among income traders, and part of their usefulness is that the price is sufficiently high to provide some flexibility in regards to strike selection. That flexibility might be lost now.

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