MM43 - Why We Love Stock Splits

I want to talk about one of my most favorite things in the world that happens in the stock market. Stock splits. I am always excited when I hear one of my favorite stocks is splitting, and I want to teach you the math and how to create a vision for the future of where you want to go, and what a stock split can mean for you and your portfolio.

Let me set the scene. Let's say you start with 300 shares of Tesla. Today, you're saying, I don't want to sell calls against my Tesla because if I sell one option, that's 100 shares that might get called away. I don't want to cap my upside. I understand that. It makes total sense.

Maybe you have 200 shares. You're building your bags. If you sell a call and it gets called away, you lose 100 shares. That's half your position gone. Or maybe you only have four LEAPS. Four of the December 2028 $200 calls. You know if you sell calls against them, you have to give up one. So you sit on your hands. You wait.

But here's where it gets exciting. In the near future, Tesla is going to have an explosive move. It's going to catch a bid. And when it does, a stock split is coming.

I want to show you what that math looks like for your portfolio...