While Apple makes a plethora of products, its rainmaker is certainly the iPhone, which can sway movements in the stock when a new iteration is released. In the case of the iPhone 14, which is the latest model announced, a price increase could also potentially make for pronounced movements in the stock.
When it comes to short-term trading opportunities, the more movement, the better. When you add a dose of uncertainty, it also makes for an interesting trade that could go either way.
In the case of Apple’s latest iPhone, a price increase could tamp down demand for its bread-and-butter product. On the flip side, many consumers who are faithful to Apple will stick with the brand regardless of price increases, thus bolstering the bottom line.
“Pricing for this year’s iPhone lineup is a bit strange. Rumor has it that the Pro and Pro Max models will see a $100 price increase, pushing them to $1,099 and $1,199, respectively,” a Review Geek article said. “This price hike may come with an upgrade to 256GB of storage for the cheapest configurations, though.”
Either way, it’s an opportune time to debut a new product in the exchange traded fund (ETF) market: single-stock ETF exposure, which entails getting magnified or inverse exposure to one stock via a dynamic investment vehicle in the ETF.
Single-Stock ETF Exposure
For short-term investors or traders looking to get single-stock exposure to play moves in Apple stock, there are a pair of options to consider. They are the newly launched Direxion Daily AAPL Bull 1.5X (AAPU) and the Direxion Daily AAPL Bear 1X Shares (AAPD).
The ETFs offer tactical, short-term trading opportunities. Apple exposure can provide added leverage with AAPU to play off a trader’s bullishness. Conversely, AAPD can allow traders to take the other side when they sense bearishness in Apple stock.
“I view the ETF structure as a vehicle for efficient exposure. And that efficient exposure can manifest itself in different ways,” said David Mazza, managing director and head of product at Direxion. “When you think about the first ETF listed on the S&P 500, it was relatively simple. Since then, there have been ETFs that have been developed for areas including fixed income, commodities, and gold bullion, as well as across a variety of markets as well.”
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