Anyone who keeps even a vague eye on the tech market knows when Apple ($AAPL) announces a new iPhone model – there’s a good chance that things are about to get bumpy.
Apple’s decision to not include headphones or a charger with their new smartphone may have those long term holders scratching their heads. But for someone looking for a decent day trading opportunity, this news could signal volatility nirvana.
When the headlines of Apple’s decision – supposedly purely for environmental reasons – splashed across the internet on the 14th, the market reacted with a very sharp dip of $5 a share, before almost instantly recovering, and then proceeded to move up and down as traders wondered what to make of the revelation. Meanwhile, rival Verizon ($VZ) suffered a loss in the run-up to the announcement.
Has Apple gone too far this time? It’s unlikely. The large majority of those who buy an iPhone 12 on pre-order already have chargers and headphones compatible with Apple hardware.
Meanwhile, the new iPhone Mini’s announcement will attract those who have to this point found the line of phones that started the revolution too expensive.
So if volatility is the food of wealth, play on – to paraphrase the bard. We’re likely going to see Apple shares and rivals such as Microsoft ($MSFT) and Samsung ($SSNLF/£BC94) moving in both directions over the next few weeks as the market reacts.
Day traders who love the thrill of unpredictability will undoubtedly find a lot to enjoy here.
However, those looking for a less risky piece of Apple pie may want to take advantage of this bit of instability to get their hands on a cheap long.
Apple will be announcing its Q4 earnings on the 29th of October, which likely will bring a positive jump. Hold the stock for just a week more, and you hit the 6th November ex-dividend date for a little extra guaranteed return. Factor in a likely boost when Apple reveals just how many iPhone 12s have been pre-ordered and that piece of pie is starting to smell very sweet indeed!
As always, keep your wits about you and don’t expose yourself to too much risk.