Thank you Apple (AAPL), see you at next WWDC

by OptionPundit on June 11, 2012

Apple (AAPL) kicked off its 23rd Worldwide Developers Conference (WWDC) with a big bang. I earlier shared a special trading opportunity that is linked to WWDC based on probabilities of AAPL‘s price action from past WWDCs (Please click here to read more about that.). The concept was the following-

  1. Most of the time, AAPL starts to go-up 8-18 days prior to conference leading into the 1st day of conference. Here are past dates for your reference to back test for determining optimum entry points.
  2. Once conference starts (especially when Steve Jobs used to come on stage), AAPL starts to pullback.

So how did It perform yesterday, the first day of 2012 WWDC. Please look at the chart below.

AAPL Price Action on WWDC Day
AAPL continued to trade in a tight range till 12:30pm; then after creating a simple MACD divergence with price it soon broke intraday trend line support. The WWDC started at 1pm EST; there was knee jerk reaction at first; followed by a mild rebound till Tim Cook arrived on stage. Tim then passed stage to Phil and soon AAPL started to drop below opening range; and then continued to pullback throughout the day.

Here is what I mentioned to OPNewsletter members -

As it turned out, the history repeated. Here is my trade’s screenshot.

Since, I placed my order per trailing order, system sold my puts for $11.20 (purchased at $8.80). Do I regret it? NO. In the world of coulda, woulda shoulda, those puts would have doubled by the end of the day. But operating discipline far outweigh benefits from coulda, woulda, shoulda.

See you Apple at World-wide developers conference 2013.  Hopefully, it will be different next time.

Profitable Trading, OP

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