Apple (AAPL) World Wide Developers Conference (WWDC) for 2012 is scheduled for Jun 11-15 in San Francisco. This is probably the most followed, most awaited developer’s conference in the world and there is plenty of excitement already. The opportunity to benefit from such an event exists not only for the developers but also for Option Traders. What? Yes, you could trade and benefit from this most awaited event. Though some gains have already been made, still there is plenty of juice.
Here is how?
There are two things-
- Most of the time, AAPL starts to go-up 8-18 days prior to conference leading to the 1st day of conference. Here are past dates for your reference to back test for determining optimum entry points.
- Once conference starts (especially when Steve Jobs used to come on stage), AAPL starts to pullback.
Here are the actual results of REAL Trades by REAL Traders since 2008 upto last year. We have been trading it year after year. Will this happen again? There is NO guarantee. Is there a possibility of happening it again, past experience says “yes”. As a full time option trader, for me it is all about probabilities and risk management. Probability seems to favor similar scenario this year as well.
Just in case if you would like to see AAPL price chart. There are two powerful bullish patterns. Inverse Head & Shoulder and a Bull Flag.
Options offer the flexibility of making money even if you are wrong but if you know how to quickly adjust your position and manage risk. You may choose to open a Bull Call Vertical spread (your risk/reward will be limited) and then on the day itself, you may either want to convert into an strangle or bear call spread. There are many ways to play it. Here is an example for your reference.
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Please note, this AAPL post is NOT about predicting long term direction of AAPL. This is ONLY about trading this special EVENT.As an option trader, I am also not looking for massive movements in the stock. Just the pattern leading into/out of the conference is good enough.
When I open trade on the conference day, I shall post it as well. You may want to stay in touch via following my updates here on seeking alpha or twitter.
Profitable Trading, OP