T-Mobile (DT), a subsidiary of Deutsche Telekom, has landed the iPhone contract for the German Market. The German based company seemed a natural fit to provide service for the phone. Germany provides a potentially robust market for Apple as the country currently leads the world in exports and is Europe’s largest economy.
Audio Podcast:
An audio podcast of this article is available at: poweropt.com/podcasts/2007_09_19_Germanphone.mp3
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The phone will also be launched in England on the same day, November 9th. The English carrier will be offered by O2. O2 is a subsidiary of Spain Telefonica SA (TEF). The German and English carriers will also require a 2-year contract similar to the one offered to American consumers by AT&T (T).
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Apple (AAPL) will charge around $550 for the phone in the European market. Apple has been widely criticized in the US for slashing the price of the phone to $399 after initially offering it for $599. It is not clear whether the company will perform a similar price adjustment after the European Christmas season. Apple will ramp up production to 2.7 million units (from around 1.5 million) to meet the anticipated European demand.
France Telecom (FTE) is likely to be the carrier in the French market. It is not clear when the date for the French release will be.
Several potential problems with the phone’s salability have been noted by technology insiders. The phone’s price may be a little off-putting to the European market. They already have a very robust phone market and more dazzling technologies than those offered in the American marketplace. Also, the phone will be using EDGE data-transmission technology. Industry experts claim the EDGE technology is considerably slower than other wireless data transmission methods already offered to European consumers.
Looking at this News from an Option Trading Perspective:
Some of the companies mentioned above may see a boost in profits and sales due to the introduction of the iPhone. In this article, we will use the PowerOptions SmartSearchXL covered call search platform to identify trades.
The trades listed below were found by setting up a recommended stock list including Deutsche Telekom(DT), Apple (AAPL), AT&T (T) and Spain Telefonica SA (TEF). France Telecom (FTE) was not included because it is not an optionable stock. A standard search of options expiring in the next 150 days with greater than 3% potential and 3% downside protection was performed. Also, only options with bid prices greater than $0.40 were included in the results.
Potential Trades:
The options involved in the following trades have 94 to 122 days until expiration.
| Power Options Covered Call Search Data – iPhone Expands into Europe | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Symbol | Stock Price |
Option | Option Details |
Opt. Bid |
Net Debit |
% Dnsd Prot |
% if Unch |
% if Asgnd |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AAPL | 142.97 (+2.05) | APVAI | 08 JAN 145.0 (122) | $14.20 | $128.77 | 9.9 | 11 | 12.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AAPL | 142.97 (+2.05) | APVAH | 08 JAN 140.0 (122) | $16.60 | $126.37 | 11.6 | 10.8 | 10.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| T | 41.64 (+0.81) | TAV | 08 JAN 42.5 (122) | $1.95 | $39.69 | 4.7 | 4.9 | 7.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| DT | 19.50 (+0.03) | DTAD | 08 JAN 20.0 (122) | $0.80 | $18.70 | 4.1 | 4.3 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| TEF | 81.65 (+0.23) | TEFLP | 07 DEC 80.0 (94) | $4.80 | $76.85 | 5.9 | 4.1 | 4.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comment:
Some of these trades have a rather long holding period, and there may be other more interesting trading options elsewhere. Because the iPhone will release in November, it might be interesting to perform a similar search in mid-October.
The January $145 Apple trade offers a respectable 12.6% potential profit and 9.9% downside protection. Also of note, the Deutsche Telekom January 2008 $20 trade offers a respectable, although conservative, 7% potential profit.
Competitors:
Competitors for AAPL include: Dell Inc. (DELL), Hewlett-Packard Co. (HPQ), Microsoft Corporation (MSFT), Adobe Systems Inc. (ADBE), Avid Technology Inc. (AVID), Creative Technology Limited (CREAF), DivX Inc. (DIVX), Napster Inc. (NAPS), RealNetworks Inc. (RNWK), and Sonic Solutions (SNIC).
Competitors for T include: Qwest Communications International Inc. (Q), Sprint Nextel Corp. (S), Verizon Communications Inc. (VZ), Cincinnati Bell Inc. (CBB), Cbeyond Inc. (CBEY), Clearwire Corp. (CLWR), Consolidated Comms. Hldgs. Inc. (CNSL), CenturyTel Inc. (CTL), Citizens Utilities Co. (CZN), Earthlink Inc. (ELNK), Embarq Corp. (EQ), Equinix Inc. (EQIX), Fairpoint Comms. Inc. (FRP), FiberTower Corp. (FTWR), Global Crossing Ltd. (GLBC), Internap Network Services Corp. (INAP), IPass Inc. (IPAS), Iowa Telecom. Svs. Inc. (IWA), Level 3 Comm. Inc. (LVLT), Mediacom Communications Corp. (MCCC), Nuance Comms. (NUAN), SAVVIS Inc. (SVVS), Telephone & Data Systems Inc. (TDS), TiVo Inc. (TIVO), Terremark Worldwide Inc. (TMRK), TNS Inc. (TNS), Time Warner Telecom Inc. (TWTC), United Online Inc. (UNTD), Vonage Hldgs. Corp. (VG), Vivo Participacoes S.A. (VIV), and Windstream Corp. (WIN).
Competitors for DT include: BT Group plc (BT), France Telecom (FTE), and Vodafone Group plc (VOD).
Competitors for TEF include: Auna Telecomunicaciones S.A. (private), Jazztel PLC (private), Vodafone España, S.A. (private), Millicom Intnl. Cellular S.A. (MICC), and Terremark Worldwide Inc. (TMRK).
For more information about how to identify and research great option trades, visit the PowerOptions website. There you will find the data you need to make quick, clear, and informed decisions. You can trade knowing you have found the best investment. Also, PowerOptions will allow you, with a few quick clicks, to quickly and accurately compare trades. PowerOptions‘ premium customer support is second to none in the industry. They can be easily contacted when you need them at their toll-free number to answer customer questions. Call them now toll free at 877-992-7971.
PowerOptions provides a free 14-day trial of its service. So join PowerOptions today, and you too can start reaping the benefits of the covered call investment strategy.
[tags] Auna Telecomunicaciones S.A., Jazztel PLC, Vodafone España, S.A., AAPL, Apple Computer Inc., ADBE, Adobe Systems Inc., AVID, Avid Technology Inc., CBB, Cincinnati Bell Inc., CBEY, Cbeyond Inc., CLWR, Clearwire Corp., CNSL, Consolidated Comms. Hldgs. Inc., CREAF, Creative Technology Limited, CTL, CenturyTel Inc., CZN, Citizens Utilities Co., DELL, Dell Computer Corp., DIVX, DivX Inc., DT, Deutsche Telekom AG ADR, ELNK, Earthlink Inc., EQ, Embarq Corp., EQIX, Equinix Inc., FRP, Fairpoint Comms. Inc., FTWR, FiberTower Corp., GLBC, Global Crossing Ltd., HPQ, Hewlett Packard, INAP, Internap Network Services Corp., IPAS, IPass Inc., IWA, Iowa Telecom. Svs. Inc., LVLT, Level 3 Comm. Inc., MCCC, Mediacom Communications Corp., MICC, Millicom Intnl. Cellular S.A., MSFT, Microsoft Corp., NAPS, Napster Inc., NUAN, Nuance Comms., Q, Qwest Comm. Intl., RNWK, RealNetworks Inc., S, Sprint Nextel Corp., SNIC, Sonic Solutions, SVVS, SAVVIS Inc., T, AT&T Corp., TDS, Telephone & Data Systems Inc., TEF, Telefonica de Espana S.A. ADR, TIVO, TiVo Inc., TMRK, Terremark Worldwide Inc., TNS, TNS Inc., TWTC, Time Warner Telecom Inc., UNTD, United Online Inc., VG, Vonage Hldgs. Corp., VIV, Vivo Participacoes S.A., VOD, Vodafone AirTouch PLC, VZ, Verizon Wireless, WIN, Windstream Corp., covered call investment strategy, investment strategy, poweroptions [/tags]