Apple Spread Betting Guide

Apple Spread Betting Guide

Apple Spread Betting Guide

arrow_forwardLive Apple Chart
arrow_forwardLive Apple Prices
arrow_forwardWhere to Spread Bet on Apple
arrow_forwardHow to Spread Bet on Apple


Live Apple Chart and Prices



3 November 2017: Q4 – Apple Tastes More Success

  • trending_upApple’s share price rose in after-hours trading as the tech firm showed off a strong Q4 (and yes, it’s Apple’s Q4 not Q3 like most of US firms)
  • trending_upEarnings per share for Q4 were $2.07 (and easy beat of the estimated $1.87)
  • trending_upRevenues hit $52.6bn vs the estimated $50.7bn
  • trending_upAll important Chinese growth was up 12% on the year (a solid turnaround from the previous drop)

1 November 2017: Apple’s Finance Arm Half the Size of Goldman Sachs

In case you missed it, this week’s Economist covered Apple’s finance side of the business which:

Has $262bn of assets, $108bn of debt, and has traded $1.6trn of securities since 2011.
One the one hand, the fact that the world’s biggest firm by market cap, has huge assets isn’t a surprise.

On the other hand, $108bn in debt? Trading $1.6trn in securities? Half the size of Goldmans? WTF.

Read the full story on The Economist.


13 September 2017: 100 Point Moves in 10 Minutes

Yesterday we saw a number of 100 point moves in 10 minute periods.

Anyone thinking of spread betting on Apple needs to be very very careful.

Apple Chart



12 September 2017: Take Care When Spread Betting on Apple

The new iPhone launch is upon us.

Be careful if you are spread betting on the tech firm, the stock can easily move 5% or 500pts in a single session.

Remember that the stock might be around $161.40 but with US stocks you spread bet per 1 ¢ move.

Spread betting on each 1¢ move makes a lot of American stocks difficult to trade.

Note that with financial spread betting, a lot of US stocks are often quoted in ¢ rather than US$ i.e. 16140 rather than $161.40. This just makes it a little easier to understand what your trades.

I’ll often avoid American stocks because while a 5% move for a stock happens on many global exchanges, I really don’t want 500pt moves in a single trading session.

E.g. recent moves with Apple:

  • error9-Jun-17 – a low of 14604 and a high of 15518 = 914pt move (6.26%)
  • error27-Jul-17 – a low of 14736 and a high of 15398 = 662pt move (4.49%)
  • error10-Aug-17 – a low of 15462 and a high of 15997 = 535pt move (3.46%)
  • error8-Sep-17 – a low of 15853 and a high of 16116 = 263pt move (1.66%)
(Note – on Spread Bet Mag we have been trading Snap Inc recently but that stock was priced around $13 and so the daily moves were easier to navigate.)

OK the sharper readers will argue that the Apple share price didn’t open and close at the levels listed above but I’ll counter that that was the range on those days.

So yes, in reality, the percentage moves were smaller than the ones I’ve listed but the ranges listed above are correct.

And this is just a small selection of moves.

There are plenty of other days that Apple spread bets can go wrong too.

As is often the case, if you must trade… small stakes are a wise move.

Financial Spreads and Core Spreads will let you trade £0.50/pt and IG will let you trade £0.20/pt.


Extra Care Needed with the iPhone Launch
Some of the recent iPhone launches have been damp squibs.

If the launch doesn’t impress then investors might be hitting the sell button.


2 August 2017: Impressive Quarterly Numbers See Apple Shares Jump 5%

  • trending_upQuarterly profit up 12% to $8.7bn and importantly, exceeded analyst expectations
  • trending_upRevenues up 7% year-on-year to $45.4bn
  • trending_upQuarterly iPhones sales up 2% year-on-year, helped by strong demand from Latin America and the Middle East
  • trending_upiPhones revenues, which account for most of the firm’s revenues, up 3% to $24.8bn
  • trending_upiPads sales up 28% year-on-year
  • trending_upiPad revenues up 2% year-on-year
  • trending_upRevenue from other devices, e.g. Apple Watch, Apple TV and Beats, up 23% year-on-year
  • trending_upThe “Services unit” which includes Apple Pay, the App Store and Apple Music saw revenues of $7.3bn in Q2 2017, up 22% year-on-year
  • trending_upApple Pay now covers about 90% of global mobile payment transactions
  • trending_downShipments to China were down 27% – the tech firm is losing ground to the locals, and possibly Chinese politics. Revenues from China were down 9.5% year-on-year to $8bn
So not much bad news there… and the P/E ratio is a pretty respectable 18.48, so high but not like many daft tech P/E ratios.

  • warningWhat could go wrong? The new iPhone is due in September 2017

Where Can I Spread Bet on Apple?

Most spread betting brokers will offer markets on the bigger US stocks including Apple.

Company American Shares? US Shares
Min Stake
Mobile
Apps
Guaranteed Stop Free If Not Triggered? Inactivity Fee Trading Offer Apply
Financial Spreads Review check_box £0.50 check_boxiOS
check_boxAndroid
check_box £0 check_box Apply
City Index Review check_box £1 check_boxiOS
check_boxAndroid
cancel £0 cancel Apply
ETX Capital Review check_box £0.50 check_boxiOS
check_boxAndroid
cancel £15 cancel Apply
IG Review check_box £1-5 check_boxiOS
check_boxAndroid
check_boxWindows
check_box £12 cancel Apply
InterTrader Review check_box £1 check_boxiOS
check_boxAndroid
cancel £0 check_box Apply


How to Spread Bet on Apple

As an example, let’s imagine you are thinking of speculating on Apple, so you look on a website, e.g. IG, and see that they are offering the market price:

Apple Rolling Daily: $398.01 – $398.70

Here’s what you can expect with a spread bet.

Spread Betting Market: Apple Rolling Daily
The Spread Betting Price: $398.01 – $398.70
How the Trade Works: Now you can bet on the Apple Rolling Daily market to go:

  arrow_upward  Above $398.70, or
  arrow_downward  Below $398.01

This is a Rolling Daily spread betting market so it does not have a closing date. If you don’t close your position and the trading session ends then your position will automatically roll over into the next trading session.

Note that if a trade rolls over then you will normally either be charged or receive a small fee for overnight financing depending on whether you are betting on the market to move higher or lower.

To learn more see Rolling Spread Betting.
Trading Units: Spread trades on the Apple market are made in £x per cent.

Where a cent is $0.01 of the share’s price movement.

E.g. if Apple changes by 55¢ ($0.55) then you would lose or gain 55 multiples of your stake.
Stake: You choose how much you would like to trade per cent, e.g. £1 per cent, £5 per cent, £10 per cent etc.
Brief Staking Example: If you decided on a stake of £2 per cent and Apple moves $0.29 (29¢), you would lose / win £2 per cent x 29¢ = £58.


Spread Betting Example | Buying Apple

Spread trading on the tech giant’s shares to go up in value

You Consider Whether to Buy or Sell: Apple to push:

  arrow_upward  Above $398.70? or
  arrow_downward  Below $398.01?

Let’s Say You Choose to Go Long:   arrow_upward  Above $398.70
You Select Your Stake, Let’s Say You Choose: £2 per cent
So What Now?
  • You win £2 for every cent ($0.01) Apple increases above $398.70
  • Your spread bet loses £2 for each cent ($0.01) Apple goes below $398.70
When Betting on a Market to Increase Your Profits (or Losses) = (Closing Level – Initial Level) x stake per cent
 
Trading Situation 1 Apple pushes higher and the market becomes $399.90 – $400.59.
Lock in Your Profit? You could choose to leave your trade open or close it in order to take a profit. For this example, you decide to close your bet and sell at $399.90.
Your Profits (or Losses) = (Closing Level – Initial Level) x stake per cent
($399.90 – $398.70) x £2 per cent
$1.20 x £2 per cent
120¢ x £2 per cent
Your Profits (or Losses) = £240 profit
 
Trading Situation 2 Apple drops and the spread betting market is adjusted and moved to $397.60 – $398.29.
Limit Your Loss? You can decide to let your spread bet run or close it in order to limit your losses. In this instance you opt to settle your position by selling at $397.60.
Your Profits (or Losses) = (Closing Level – Initial Level) x stake per cent
($397.60 – $398.70) x £2 per cent
-$1.10 x £2 per cent
-110¢ x £2 per cent
Your Profits (or Losses) = -£220 loss


Fully Worked Example | Selling Apple

Financial spread betting on the US tech firm’s shares to go down

You Decide Whether to Go Long or Short: Apple moving:

  arrow_upward  Above $398.70? or
  arrow_downward  Below $398.01?

Let’s Say You Want to Go Short:   arrow_downward  Below $398.01
You Decide Your Stake Size, Let’s Assume You Opt For: £1 per cent
What Next?
  • Your spread bet loses £1 for each cent ($0.01) Apple rises higher than $398.01
  • You win £1 for each cent ($0.01) Apple falls lower than $398.01
When Selling a Market Your Profits (or Losses) = (Initial Level – Closing Level) x stake per cent
 
Trading Situation 3 Apple goes lower and the spread trading market is revised and set at $395.83 – $396.52.
Close and Take Your Profit? You could decide to let your trade run or close it in order to take your profit. In this case you decide to settle your trade and buy at $396.52.
Your Profits (or Losses) = (Initial Level – Closing Level) x stake per cent
($398.01 – $396.52) x £1 per cent
$1.49 x £1 per cent
149¢ x £1 per cent
Your Profits (or Losses) = £149 profit
 
Trading Situation 4 Apple goes higher and the financial spread betting market is adjusted to $398.69 – $399.38.
Time to Limit the Loss?You may decide to let your spread bet run or close it, i.e. close your trade to limit your losses. In this case you opt to close your position and buy the market at $399.38.
Your P&L = (Initial Level – Closing Level) x stake per cent
($398.01 – $399.38) x £1 per cent
-$1.37 x £1 per cent
-137¢ x £1 per cent
Your P&L = -£137 loss


Apple Notes:

  • Spread betting guide prices from IG, 2 November 2011
  • Investors could also spread bet on Apple in euros/cent and US dollars/cent

AuthorAlex Turner

Senior Editor, SpreadBetMagazine

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