It is the battle of the tech titans as both RIMM and AAPL battle for the smartphone market share. Although Research In Motion is a well established tech giant as the creator of the BlackBerry, they may have hit a wall with Apple, Inc.'s launch of the phenomenally popular iPhone.
This tech battle may create a way to trade these markets with a lower risk. During this latest rally, RIMM did not perform well, nor were the changes in price as exuberant as the shares for AAPL.
Video on next page
I am looking for the general market to show weakness through the next week... with that said, I expect to see RIMM slide faster than AAPL. It may be conservative trading strategy to buy Apple and short Research In Motion. Take an equal amount of money for each market and buy a corresponding number of shares to balance the positions and decrease risk.
This is what I call "pair trading." You're looking for the percentage change in the market between RIMM and APPL to move in Apple's favor no matter which direction APPL or RIMM head.
In my new short video, you will learn why I came up with this strategy and why it may offer a low-risk trade in the current market environment.
As always, the videos are free to watch and there is no requirement for registration.
All the best,
Thanks for your good advice.
Thanks Adam,
you post a great video and trading strategies.
Mjor.
Kewl phone, Thanks for the video 🙂
This article gives the light in which we can observe the reality. this is very nice one and gives indepth information. thanks for this nice article.
thanks for sharing a great info and video
Cool cellphone
Just remember that RIM and it's BlackBerry still have the enterprise locked up tighter than a stainless steel chastity belt. Whether the iPhone has an industrial grade OS or not, security-wise corporations won't touch iPhones because they're not secure enough and they can't remotely manage 10,000 iPhones over a network. Apple is dead in the water at this point. RIM might be losing money on each item by offering BOGOF sales, but WS and investors love this because they see it as an increase in market share. RIM will do whatever it needs to stay ahead of Apple in the smartphone market. The iPhone is still locked on one carrier and that it certainly limiting iPhone sales.
If Apple can get some iPhone sales in China that will certainly help. Although Apple is pursuing consumers at a furious rate with app store games, they really need to work to getting the iPhone some management tools for big corporations in order to break RIM's nearly exclusive corporate stranglehold and give Apple some respectability as a business company and not just a toy company. I've seen this stated many times that Apple is known for only making devices that children and adults play with.
Will the iPhone Grab the Lead in Games?
Game developers are looking to Apple iPhone owners as a new audience for their latest creations
You might want to check out this article in BusinessWeek.
http://www.businessweek.com/technology/content/may2009/tc20090517_030920.htm?chan=top+news_top+news+index+-+temp_technology
Thanks for your feedback.
Adam
I am puzzled by your conclusion that AAPL has been stronger lately than
RIMM. Checking the actual performances of the two stocks shows that RIMM has outperformed AAPL as follows:
RIMM vs AAPL Percentage Gains
3Months: 61% vs 30%
2Months: 70% vs 20%
1Month: 8.5% vs 1.5%
10Days: -2.5% vs -4.5%
5Days: 1% vs -4%
These figures would seem to me to show not only out-performance by RIMM,
but that, in fact, RIMM has been dramatically stronger than AAPL over the last quarter. What is your response?
James,
Take a look at these numbers. I think Apple wins in the long run.
----------------YTD |----Year---| 5 year
AAPL | +43.43% | -35.48% | +819.07%
RIMM | +78.27% | -48.59% | +366.71%
Thanks for your feedback.
Adam
Thanks for the video. I like to know that how long we should keep this positions & If we buy options, what expiration month we should buy?
Narayan,
See my comment below.
Thanks,
Adam
Adam, Thank you so much for your video on Apple/Rimm strategy. What time frame are you looking at to expect the desired result? As you know, on day one, ie, May 15, RIMM has performed better instead of Apple. How long one should keep this position open?
I don't understand why you would buy AAPL if you expect it to drop? even if not as far as RIMM. More explanation pls? Doesn't this mean ignoring the trade triangle symbols??
Thanks Adam for your video's and trading strategies.
I think RIM is only hurting itself in the long run by flooding the market with $99 phones and the now long running two for one specials in order to maintain or gain market share.
Apple's approach of developing a single, consistent & sustainable platform is much more more attractive in the long run. And it's starting to pay off. For example, just this week I saw two commercials touting iPhone apps by two separate vendors, namely E-trade & Nationwide.
I'm sure RIM's coming out with new phones by this fall; but this will only serve to aggravate all those people that already invested in a Curve or Storm. Not to mention that Apple's iPhone runs on an industrial grade OS, as is obvious by all the apps and what they can do; versus RIM which is trying to hobble along and extend the abiltities of an antiquated platform.
Ird,
Great comment. Thanks for your input.
Adam