Sell Apple before markets open? (Spread betting)

parc

Just want some information, to see if this is a good idea:

With the news of Steve Jobs stepping down from apple, it has fell about 6% on the German markets on open this morning. A very sharp drop

Now I have a spread betting account, so would it be a good idea to put in a sell order for the US market before it opens? I don't want to jump the gun and make a bit mistake here though

Here's some details from the dealing ticket:

Current Level 37614/37622
Size (Min: 0.24 per point)

So if I put £10 a pip with a spread of 6points that would have me starting off at -£60 (spread) but an open of -5% would have me in profit?

shawnee

Buy on the rumour and sell on the news !!:p

strmin

Your sell order would not be executed before markets opened. I can't imagine any platform letting you sell 376,14 then price pre-market 359,50. No free lunch for you here.

SBWife

shawnee wrote: »

Buy on the rumour and sell on the news !!:p

Both trite and applies only to positive news.

If you're shorting you'd sell on the rumour and buy in the news. In this case you'd buy Apple after the opening as Job's departure had been well signaled and much of the impact had already been priced in. The immediate market reaction on the downside would be seen to be the anominally the same way a post earnings pop after an expected earnings outperformance is.

parc

so it opened and shot down. just wondering, I placed an order earlier today, would I have sold at Current Level 37614/37622 before it shot down, or would it be half way down when the bid went through?

dannyreillyboy

Apple have been preparing for this eventuality for years. Short Term the share price will wobble but Apple have at least 5 years of products in the pipeline and a top team of Apple-cultured executives. The company has never had a stronger ethos of what it is and it will continue to grow. I wouldn't sell, in fact, I'd consider buying more shares when the price is down!

Gandalph

I agree with buying now while the price is low, Tim Cook has been left with a couple years of Jobs technology. Also the Iphone 5 is on the brink of release which should she share price rise.