Last month, a founding partner at AlphaOne Capital Partners, Daniel Niles, noted that the trade war with China could affect Apple’s profits, and in turn, impact investors holding the stock. Niles told CNBC’s Trading Nation that China accounts for about 18% of Apple’s revenue.
“China is actually driving their business. So if you think about what’s going on right now with the trade spat that we have going on with China, I mean this is something that should really concern you,” the hedge fund manager said.
What Should Investors Do?
Stephen Guilfoyle of The Street has come up with a suggestion for investors caught between the new iPhone release and the trade war.
Guilfoyle notes that, considering the “two-way headline risk regarding Apple, you’re better off not adding exposure in either direction at or close to current prices. Instead, I’m short some AAPL November put options — and given the potential for an increase in some put premiums Monday, I’ll likely add to these positions (albeit carefully).”
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