Quote:
Originally Posted by JMarchand1981
OK, I will help with this.
Definitely not using the proper terminology, but that's ok.
What you are doing is holding Apple for the short term. Being short Apple is an entirely different thing.
Being short means you are borrowing shares that you then sell because you believe the stock price will go down. If the price goes down, you can then buy those shares back and then sell them to the entity that you borrowed them from. Very dangerous. Double down on the risk when you are literally talking about one of the premier companies in the entire world.
I also thought I remembered you mentioning you were relatively new to this, so I was very very surprised that you could, meaning found a brokerage house that would allow you to take on that kind of risk without a ton of derivative and alt-strat experience.
By and large, Apple is a "hold" company for most, but I don't see an issue with someone holding it for a short trip up (not that anyone cares). If you are reading it one way and you believe in your method, by all means. I am long, long, super long on Apple so I just happen to see it differently.
|
Ok so I just used the wrong term.
I’m trading aapl downwards in the short term so rather than selling shares on margin to buy them back at a lower price im simply buying puts for a short term gain (hopefully). I bought to open puts at 120 and will sell to close those puts well before the strike date.
Personally I have no interest in Apple as a company and I’m not a big believer in their long term outlook simply because they’re not an innovator anymore. They haven’t done anything worthwhile and basically just keep pumping out the same phone with a new name. iPhone sales have been declining for 5 years now and services haven’t grown at the rate iPhone sales have declined.