Update: a user reminded me it's not an arbitrage, I agree with him. However I'm not able to update the post title, so I'm putting this update on the front here
I'm sharing this old idea I had more than a decade ago. I bought AAPL around 2012. Then for several years, I would look daily at it's stock price. One day i noticed that if I bought AAPL at 9am ET on Monday morning then sell at 9.30am ET, I could possibly make a profit, at least on days where the market would not be doom and gloomy.
Doing it daily and compounding the profits, I'd end up possibly rich, at least based on a quick calculation I did in either 2014 or 2015 with a subset of data ranging forabout a quarter length…
That's it, easy right, little risk, hence a possible arbitrage:
Buy AAPL at 9 on Monday, sell it at 9.30.
But I never executed the idea as I didn't want to get into the active trading thing.
Fast forward now in 2024, I'm wondering if it was a great idea?
I don't have access to my Bloomberg anymore and don't have time to run numbers. Maybe it's an old well known idea among traders and I'm not the first one who thought about it.
Maybe it's still a valid trade, maybe there are other stocks who would enjoy the Monday morning effect or kick.
I have no idea.
But I wanted to share it here to all the experts to get some insights.
Feel free to use it if you can make a buck out of it. If you become rich and reach the moon, don't forget me :).
Cheers.
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