Yeah, everyone wants something for nothing! There are no free gifts. "Beware of Greeks bearing gifts." Is the maxim the Trojans learned when they brought the Trojan Horse in. And you cannot fight the big investors and hedge funds because they would just run you over and not miss a beat! Retail traders if they would just open their eyes would realize that there are opportunities in the stockmarket daily. All you need to do is go and grab it!
I saw it on Bloomberg. That was when AAPL had that massive plunge towards the end of last year. The Chinese government is "suggesting" that their population "buy local." The message is, "There's about 100 smartphone manufacturers in China... buy one of them."
Agreed, shorting can be risky; I acknowledge your point, but the specific instrument matters. If AAPL shoots ups 20% it's a massive move, in the tens of billions. Plunging AAPL is not like some Pharma startup that's going from $5 to $75 overnight because the FDA approved their new cancer drug. I'm not saying that you can't get hurt, but I think that the risk of getting caught in a short squeeze with AAPL is pretty low.
Interesting! I hate to say it, but I like it: hedge the short position on AAPL with a long on SPY! He's not looking for a free lunch, he's making a smart play. The risk is if AAPL outperforms the SPY.
So was the SPX and AAPL in September: https://www.elitetrader.com/et/threads/the-spx-has-hit-a-cyclical-top.325108/
yes. In Sept 2018, AAPL was still in rising trend line. 2 months later, it broke the trend line and price went down to 140 level.
I began shorting S&P and SNs in mid September. AAPL was 218 at the time. I recall your bullish comments on my thread at SPX 2900. How'd that work for you?
But I don't think we want that much correlation. The idea is that individual stock has more news risk than a broad index. Assumption is that the good news gets priced in, but the bad news mostly comes as a surprise(I guess same reason puts often priced higher than calls). But this requires so much money that I don't think it's worth the pay off.