Apple Share Price: Investors Bullish ahead of September 10 Event

on Sep 10, 2013
Listen, Tuesday, September 10: In the past two weeks Apple (NASDAQ:AAPL) investors have bought almost two times the number of call options than puts on three major US option exchanges, Reuters said yesterday, citing a Cincinnati-based options research firm. This underlines investors’ optimism ahead of Apple’s big event today at which the company is set to unveil two new models in its

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

iPhone range of smartphones. The potential announcement of a deal with the world’s largest mobile carrier China Mobile, which would help Apple expand rapidly in the Chinese market is also stoking investors’ hopes. However, despite this optimism some analysts warn that there are still factors that could weigh on
the share price.

**Start Trading AAPL. >> **

Apple Share Price Climbs Ahead of Double iPhone Launch Apple Share Price: Alleged Labour Violations at Chinese iPhone Plant

In today’s pre-market trading Apple shares were up 0.46 percent at $508.50 by 11:13 BST. The stock closed in yesterday’s trading 1.60 percent higher at $506.17.
**September 10 expectations**

Apple, at the event hosted at its headquarters in Cupertino, California, today, is expected to announce two new iPhone models: the high-end iPhone 5S, seen as an improvement on the existing iPhone 5, and a lower-cost version widely referred to as to the iPhone 5C, widely accepted as designed to help the company achieve greater penetration in emerging markets such as China.

But the event could produce a bigger story, with investors hoping that the iPhone maker might announce that it has finally reached a deal with China Mobile, the carrier that has more than 740 million users. A potential deal with the world’s largest mobile carrier would provide a huge boost to Apple, which is currently supported in China by mobile carriers China Telecom Corp Ltd and China Unicom Hong Kong Ltd, whose combined subscriber base of 266 million is dwarfed by that of their larger peer.

“Apple is effectively only selling to half the Chinese market today,” said Brian Colello, analyst with Morningstar, as quoted by Reuters. “They can essentially double their sales in China quickly with China Mobile. So it’s a big deal.”
But Colello also warned that many traders could have purchased Apple shares hoping of a deal with the Chinese telecoms behemoth and could sell off the stock if the deal does not materialise in the near term.
Also, the company’s shares typically sell off on major product unveilings and such a development could happen after today’s launch as well.
Meanwhile, according to Jefferies analyst Peter Misek there will be choppy trading of Apple stock after the event, with him expecting “lacklustre” sales of the handset.
Reuters quoted Misek as saying that “[l]ack of differentiation, elongating replacement rates, and
smartphone growth shifting to the very low-end below the iPhone 5C price point” are the negatives.
!m[Event Closely Watched for a China Mobile Deal Announcement](/uploads/story/5371/thumbs/pic1_inline.jpg)
**Bullish market**
Despite some less enthusiastic and more cautious views, investors are generally bullish ahead of the reveal today. Ryan Detrick, senior technical analyst at Cincinnati-based research firm Schaeffer’s Investment Research said that the call-to-put ratio for options bought on Apple in the past two weeks was 1.98, higher than 94 percent of readings over the past year. But while this indicates the optimism of the market, Detrick warned that it lifts expectations too high and a disappointment could trigger profit taking or a sell-off.
**As of 12:47 BST buy Apple shares at $508.55**
**As of 12:47 BST sell Apple shares at $508.30**

**Start Trading AAPL. >> **
Apple Share Price Climbs Ahead of Double iPhone Launch Apple Share Price: Alleged Labour Violations at Chinese iPhone Plant



Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals.

Learn more
Manufacturing Stock Market Tech