It is not wise to short now because Yahoo will most probably announce a stock split along with its earnings on Wednesday night. The stock split, which may even be a 3 for 1 version, will drive the stock up to higher levels. Plus, there are several Internet IPOs scheduled for this month which if successsful (most probably) will drive Internet stocks to even higher levels.
My accout requires covered writting of puts and or calls , this means I have to own the stock to write a call or put. Accordingly can I write puts or calls if I have sold the stock short? Anyone have an answer?????
It's stupid idea to split a fledgling stock just because it is going up in price on speculation and market mania. Besides, as a financial analyst and professional , I can very positively say that it will even look too very stupid for the CFO of that company to do that, much less the Board would allow them to do it without a shareholder approval.
The bottom line is a split will make the E.P.S look even poorer say .001/share ?. Stock split is ruled out. Go take some money to the bank and then be back onto the gambling floor on another table. You got to know when to hold on and know when to walk away.! goodluck.