The new iPhone 6 was recently released by Apple, and sales are extremely high right now. Apple has been a monumental tech company over the last ten years, and it seems that every product they put out has been met with huge hype. And when a product is released, their stock price generally increases. But, the last few days have been a bit different. Share prices haven’t gone up that much, even though the immediate sales of the iPhone 6 are up to 10 million already–a whole million better than their previous record. The big question tech stock watchers have is: why hasn’t the stock price changed much?
There are a few reasons why this could have happened, but the biggest answer is probably that investors expected this to happen and acted appropriately ahead of time. The dollar and change that the shares of Apple went up by recently were enough to give the stock an increased price change for the last five days, but not enough to signify that investors are excited about the prospects and performance of this new product.
Short term traders can still take advantage of this change, though, even if it’s smaller than expected. A binary trader can make a large profit off of tiny changes, and it is pretty clear that Apple’s stock is going to respond positively to this new phone. It’s an exciting new release from a highly touted company, and it is selling better than any of their iPhones ever have. The stock is going to improve, but if it doesn’t improve a ton, binaries can offset this for you by giving you a disproportionately large profit rate in comparison to the rate of the stock’s price change.
Binaries typically return around 80 percent or so for a 30 minute trade when your prediction in direction is correct, regardless of how much you are correct by. When something, usually a public event or announcement, triggers a predictable motion, but the degree of that motion is not fully known, binaries become the best instrument to trade for the given scenario. A new Apple product almost always makes stock prices go up. But, if the market has been inundated with new phones, and investor expectations have already been acted out on, the response might be a little tough to gauge. It will go up, but will it be a few dollars? A few pennies? If you don’t know, buying traditional stock is not a good idea. Trading with stock’s are only profitable usually with large amounts of shares and big price changes. If you cannot afford these–and most traders cannot–then it’s a better idea to trade small amounts with binaries and get high rates of return on small movement, rather than waste your time and money chasing something uncertain and expensive.
Apple’s stock is at a great price right now ever since they split. It makes shares more accessible to the general public since they are now cheaper, but this will not affect binary options traders at all. Binary options rely on movement, not on dollar amount changes. In essence, the price change was only a psychological thing, but it should be an effective one. The value of the company did not change. The number of shares increased, and the price changed accordingly to make sure that no price change actually took place. But because it’s now cheaper, it seems like a better deal. This should drive the price up again over time, but for now, the slight boost in popularity because of the iPhone 6 also makes this a good short term long choice for the time being.