To The Moon

$NVIDIA Corp(NVDA)$ will undergo a 1:10 stock split after market close on Friday, June 7th. This adjustment will take effect before the start of trading on Monday, June 10th. Here’re some key issues you should know for Overnight Trading, Fractional Shares, Options, and Leveraged ETFs.

Overnight Trading

On Monday, June 10th, NVDA's overnight trading will be paused for one day. Therefore, you will not be able to place night trading orders from 8:00 AM to 4:00 PM Singapore time.

Pre-market trading for US stocks will proceed as usual at 4:00 PM, with trading prices reflecting the post-split prices.

On Tuesday, June 11th, NVDA's overnight trading will resume normal operations.

Fractional Shares

Account holders with NVDA fractional shares should take note! The logic for splitting fractional shares is different.

• Whole shares will split into 10 times the number of shares, with the price per share divided by 10.

• Fractional shares will not change in quantity but their price will be divided by 10, and the extra fractional shares generated by the split will be cashed out.

For example:

• If an investor holds 0.1 shares of NVDA, post-split, they should have 0.1 * 10 = 1 share. Since 0.9 shares are generated from the split, these will be cashed out, resulting in the investor still holding 0.1 shares of NVDA plus the cash equivalent of 0.9 shares.

• If an investor originally holds 0.2 shares of NVDA, post-split, they should have 0.2 * 10 = 2 shares. Of these, 1.8 shares are from the split, with 0.8 shares being cashed out. The investor will then hold 1.2 shares of NVDA plus the cash equivalent of 0.8 shares.

• If an investor holds 1.8 shares of NVDA, post-split, it will split into whole shares: 1 * 10 = 10 shares, and fractional shares: 0.8 * 10 = 7.8 shares plus 0.2 shares cashed out. Thus, the post-split holdings will be 17.8 shares of NVDA with 0.2 shares cashed out.

Options

According to the Options Clearing Corporation (OCC), NVDA’s stock split will also proportionally split the options.

Therefore, post-split, the number of options contracts will become 10 times the original, and the strike price of each contract will be one-tenth of the original.

For example, if an investor holds one call option contract expiring on June 21 with a strike price of $1200, post-split, it will become 10 call option contracts expiring on June 21 with a strike price of $120 each.

The rights per options contract remain unchanged, meaning each contract still represents 100 shares of the underlying stock. Pre-split, an in-the-money call option allows the investor to buy 100 shares of NVDA at $1200; post-split, the new in-the-money option allows the investor to buy 1000 shares at $120 each.

Overall, the notional value of the options remains unchanged; only the strike price and the number of contracts are adjusted.

Option Spreads

If you hold option spreads or covered calls, your positions may be split during the adjustment period, possibly increasing margin requirements. Pay close attention to any margin changes in your account. Once the stock and options adjustments are complete, things will return to normal.

Tiger Brokers will complete the corporate action before pre-market trading (4:00 PM), but margin fluctuations may impact your night trading of other stocks.

If you hold significant NVDA option spreads, consider managing your positions proactively, such as closing some positions before the corporate action and reopening them afterward. Review your remaining margin and risk control metrics.

Leveraged ETFs

Many are concerned about NVDA’s leveraged and inverse ETFs, like $GraniteShares 2x Long NVDA Daily ETF(NVDL)$

In reality, the price of NVDL won’t change correspondingly. As a leveraged ETF, NVDL is essentially a fund that aims to double the daily price movements of NVDA. It ensures that daily price changes are tracked accurately. Post-split, NVDL will continue to track daily price changes.