How to Trade Apple During its Biggest Developer Event Ever
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America’s most valuable company is making its next great leap forward. Are you keeping up?
Apple (AAPL) just unveiled a new operating system (iOS 14) making it easier to manage apps, watch videos and interact with Siri. The $1.5 trillion firm also introduced a real-time language translator and enhanced its maps service. And, in one of the most interesting moves, iPhones will soon replace car keys for certain automobiles.
All the actions point toward one goal: making AAPL an indispensable partner in our daily lives. It’s part of the company’s evolution from making expensive gadgets to providing value-added services. If successful (and it has been so far), the change will produce a company with more staying power.
It will also enjoy higher multiples in the stock market because investors are willing to pay more for software and service companies than for hardware makers.
AAPL announced the upgrades yesterday at its annual developers’ conference, WWDC. Coronavirus forced this year’s event to be held online instead of a physical location. As a result, it had more attendees than ever.
Trading Apple Stock
The stock has already broken out to an all-time high back on June 9. It continued to new record levels yesterday during the WWDC presentations.
But what can you do about it? Did you know there are several ways to buy and sell AAPL with TradeStation?
The simplest way to take a position in AAPL is to buy shares. Customers can do this with our desktop client, web platform or mobile app.
The desktop’s Matrix, for example, maps orders in a ladder arrangement. Its chart-trading functionality lets users buy and sell directly on the price charts.
The Web platform also has Matrix, along with a standard order bar along the top.
Trading Apple Options
AAPL’s also one of the most popular stocks for trading options. These are derivative contracts letting investors position for rallies or declines.
Calls fix the price where a stock can be purchased, so they may gain value when shares go higher. Puts are just the opposite, potentially profiting from a drop because they control the level where shares can be sold.
Investors expecting further upside in AAPL may buy calls outright. They might also choose vertical spreads, which involve buying one contract and selling another. While that may sound complicated, TradeStation’s platform makes it easier by automatically matching the legs into prebuilt order ticket.
Trading Apple on TradingView
Clients can also take positions in AAPL via TradeStation’s integration with the popular charting service TradingView. The secure API connection lets customers place orders, see balances and visualize transactions on the price chart.
So what do you need to know about AAPL before trading? Here are a few key points:
AAPL, along with Microsoft (MSFT), competes for leadership as the biggest U.S. company by market capitalization.
AAPL is a key stock in the Nasdaq-100 Index, which mostly focuses on technology firms. Other big names include MSFT, Amazon.com (AMZN), Alphabet (GOOGL) and Facebook (FB). Bullish sentiment toward technology and growth stocks could lift AAPL.
AAPL’s next big event will likely be quarterly earnings. While the date hasn’t been officially set, past years suggest it may occur around July 28.
In conclusion, AAPL continues to advance as one of the most valuable companies of all time. It’s flying to new highs again as it makes a huge leap toward the next stage in its history. Hopefully this article helps you get started.
David Russell is VP of Market Intelligence at TradeStation Group. Drawing on two decades of experience as a financial journalist and analyst, his background includes equities, emerging markets, fixed-income and derivatives. He previously worked at Bloomberg News, CNBC and E*TRADE Financial.
Russell systematically reviews countless global financial headlines and indicators in search of broad tradable trends that present opportunities repeatedly over time. Customers can expect him to keep them apprised of sector leadership, relative strength and the big stories – especially those overlooked by other commentators. He’s also a big fan of generating leverage with options to limit capital at risk.
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