Apple Releases Two New iPhones & Watch, Buying Puts
The biggest tech company in the world has announced its newest product line-up refresh and the results are quite fascinating on first sight. Two new iPhones - the 6 and the 6 Plus and in addition an Apple Watch to deliver a whole new product line to the company.
However this is only at first sight. The market already expected what has been announced by Apple and priced in pretty much everything into the current share prices of the iPhone 6 maker. The Apple Watch disappointed many, especially those who realized it will have to be used near another Apple device.
There is no telling whether Apple will be able to deliver a new niche for the consumer market and essentially become the first company to succeed with a wearable device, however many analysts seem to have been disappointed by the product.
With the company setting trends and standards across the electronics world, this latest innovation could well be a flop. Will enough people be convinced that they need a wearable device which costs $350, especially when it doesn't really do anything more than their phone. We doubt it, and so does the market.
If we look at the chart we can see how the market reacted by skyrocketing higher after the firm's CEO Tim Cook stated that "there is one more thing". Prices went ballistic, but only for a short period of time. The market didn't like the product and the price went back down.
In our view, this is a great opportunity to buy daily put binary options on the Apple stock tomorrow. As long as the level is around $99, we would be buying daily puts and weekly puts for the end of this week to secure a good expiry rate after a few days. The only alternative scenario would be if prices close on a daily basis above $100.
Then we would concede defeat and stay away from trading binary options of shares of Apple for the foreseeable future.