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ppg677 | 4 years ago

I wonder if there is a psychological effect that could push more stock growth?

discuss

bduerst|4 years ago

Increased liquidity. Also option trading is usually in 100 share units, meaning retail investors can now afford more options (e.g. $15,000 vs $300,000 a unit).

kshacker|4 years ago

Anecdote warning: This is one reason I have not been able to buy/sell google options. (I did around Brexit when google was 650 or so, but not since). Even a single contract is a massive risk for a layman portfolio like mine. 1/20 will imply I will definitely attempt to trade this.

ra7|4 years ago

Going by examples in the last year (AAPL and TSLA), it seems very likely.

throwaway287391|4 years ago

It's not only psychological -- for example, a lot of brokerages don't offer fractional shares, so a split allows some retail investors to invest who couldn't afford to before. (Although that almost certainly has a smaller effect than the options contracts etc mentioned in sibling threads.)