Traders Playground

Buying Swing: buying long leg of 465 cDS at 2.22-.40 with a .95 spread in mind. We are now down bellow the 200 DMA on so want to attempt some bullish bets as we are days away from the release of the new iPhones. I think a lower than current price point is premature for if it costs them margins. In the US and other markets we see a phone go from 200 to 100 with a 2 year contract, that is a big deal and at strong margins. In emerging markets where we have seen strong revenues already at a 900 buck price point, 200 bucks lower I think still is significant enough while still mentaining the quality you expect when buying the brand. Enough at least to spur stronger sales. The bottom line is they with this direction should see a stronger overall net profit picture with this strategy in my opinion and gain market share , without going the route of low quality products where U have to sell 2 or 3 phones to make what U would make with 1 iPhone 5C.

This trade is one part of a larger strategy so please look back at Previous posts to see the whole picture. AND IF YOU ARE NEW, PAPER TRADE FOR AT LEAST A FEW MONTHS because this is ADVANCED OPTIONS TRADING !!