SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Apple Inc.
AAPL 278.79-0.7%Dec 5 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: MGV who wrote (169769)5/27/2014 10:08:40 AM
From: Since19981 Recommendation

Recommended By
HerbVic

  Read Replies (1) of 213173
 
While there is no shortage of Apple haters out there (often psychologically disturbed, channelling their frustrations with Windows or inability to afford iPhones into Apple hate), there are very few "Amateur Apple Shorts." Short interest in Apple is overwhelmingly professional and usually part of paired or hedged trades.

Short Apple Long Google was a very popular trade among hedge funds that helped drive down the stock from its highs. That trade has been partially unwound over the last year, helping Apple move up.

Large Apple short positions can be hedged with large options positions, those shorts may not be burned at all when Apple rises if their options positions are making up for it.

Imagine you are a broker who takes an Apple order to repurchase 10 million shares over the next couple months. You may end up going short in providing the shares at times but can purchase options to maintain a net neutral or long position on Apple.

The "amateur" investors having the biggest impact on Apple have been retail investors buying Apple on margin. Apple is the stock most commonly held on margin, which helped spike it up to its peak in 2012 and forced selling from margin calls were the biggest factor driving it down to the bottom in 2013. The appeal of Apple stock to happy Apple customers will continue to drive the volatile trading of the stock in the future.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News