“Common sense wins in the long run, but the short run can be dominated by sophisticated trading strategies that test your conviction,” Schwarz writes. “Apple happens to be the investment vehicle of choice, not only for the longs but the shorts as well. For many of the same reasons you love Apple stock, the shorts do, too.”
Here are seven reasons why investors love to short Apple:
1. Apple is the market leader
2. Apple always bounces back
3. The predictability of Apple reduces a short’s risk
4. New media have changed the game
5. Apple secrecy
6. Apple innovation
7. Steve Jobs is the visionary of the century
Schwarz writes, “These seven reasons make Apple an ideal short play for sophisticated traders who want to make money coming and going. The chaos of it all can cause individual investors to become frustrated with the volatility.”
Full article – recommended – here.