This is a fascinating. When all the analysts, journalists, and traders out there are universally calling sell the news, one has to wonder what is actually going to happen upon the iphone release. A few weeks ago, my inclination was the same, especially considering the valuation is pricing in success before its delivered. But with everyone in the media and on these trader boards getting overly bearish, I don't think its that simple.
I'm thinking the actual result for traders will likely be unspectactular ... pinning to 125 area for a few months. I'm thinking the only likely profitable trade will be the seemingly riskiest one: selling volatility (thats already relatively low).
since volatility is low, long options traders will get screwed, shorts will be disappointed ... even among -expected- bad news criticism on iphone.
http://www.marketwatch.com/news/sto...8BD-C306-4CCD-90CF-F5DAE5617D4D}&siteid=yhoof
http://www.marketwatch.com/news/sto...-E3F8-44B1-9739-1024AAE7EFDF}&dist=TNMostRead
I'm thinking the actual result for traders will likely be unspectactular ... pinning to 125 area for a few months. I'm thinking the only likely profitable trade will be the seemingly riskiest one: selling volatility (thats already relatively low).
since volatility is low, long options traders will get screwed, shorts will be disappointed ... even among -expected- bad news criticism on iphone.
http://www.marketwatch.com/news/sto...8BD-C306-4CCD-90CF-F5DAE5617D4D}&siteid=yhoof
http://www.marketwatch.com/news/sto...-E3F8-44B1-9739-1024AAE7EFDF}&dist=TNMostRead

