Apple Computer (AAPL) has recaptured the $200 level and is at session highs of $200.74 (+.08) on unusubstantiated talk the company will announce a four-for-one stock split — on CNBC. The action started about 45 minutes ago. In the options, the reaction is muted so far. Total volume is running about 66 percent the typical levels. March 200 and 210 calls are the most actives, with more than 13K traded in each contract.

While a split is cosmetic in nature and has no impact on the value of the company, some believe that a stock split can drive shares higher because the lower stock price makes it more appealing for smaller retail investors. The net result is an increase in demand for shares. The academic research on the topic is mixed, but there does seem to be some evidence that taking a position before the split announcement is made and holding a week or two after the split takes place can produce good results.