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jrod87 (85.51)

How can I short Apple (AAPL)?

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March 11, 2010 – Comments (16) | RELATED TICKERS: AAPL

No Im asking how do I do this? is there a fund? is there a ticker or sumthing? I hat The 'Jobs" wanan make money on his sort comings(if i can). Pls any input might be useful thank you.

16 Comments – Post Your Own

#1) On March 11, 2010 at 12:58 PM, jrod87 (85.51) wrote:

Sorry for the type'o's ( I Hate The 'Jobs') As in Steve

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#2) On March 11, 2010 at 1:44 PM, 100ozRound (29.73) wrote:

just sell them.  you need a margin account to "borrow" the shares.

 

be careful though cuz if you short them and they keep going up you're going to find yourself in a world of hurt.

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#3) On March 11, 2010 at 1:58 PM, jrod87 (85.51) wrote:

margin account? how do i get those? and borrow? so i wouldnt be buying them just holding and selling? I know these are "noob" questions but maby you could add a link with more info thank you!

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#4) On March 11, 2010 at 2:00 PM, dsp444 (79.10) wrote:

buy a put option is the best way.  No margin required, no way to lose more than you pur down.

 

 

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#5) On March 11, 2010 at 2:15 PM, 100ozRound (29.73) wrote:

You get a margin account with a broker. You're basically borrowing money from your broker to invest/trade with.

When you short sell, you are basically borrowing someone elses shares then turning around and selling those shares.  At some point you're going to need to buy back those shares (cover your shorts) so you really want to buy them back at a cost that is lower than what you sold them for.  If you buy them back for more than you sold them, you're obviously going to lose money - the amount that you can lose is unlimited.  

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#6) On March 11, 2010 at 2:16 PM, 100ozRound (29.73) wrote:

danpuperi is right - the least risky way to "bet" against the company is through put options.  The risk is minimal and your loss is limited to the premium you pay

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#7) On March 11, 2010 at 2:20 PM, jrod87 (85.51) wrote:

"through put options" I assume I do this with my broker too? so there a cap on how much i can lose or make correct?

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#8) On March 11, 2010 at 2:28 PM, 100ozRound (29.73) wrote:

Yes, you trade options through a broker - I use thinkorswim.com.

 

With puts, there is a maximum amount that you lose - the premium - the price you pay for the option.  There is also a maximum amount that you can gain through puts.  Puts are basically the "option" to sell a security at a specific price.

Options are too complex for me to even attempt to explain here.  

Check out the Options Industry Council website and check out their tutorials.  I also suggest getting a paper trading account and testing the waters before putting any real money in the market whether your trading stocks or options.

 

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#9) On March 11, 2010 at 2:30 PM, Superdrol (96.41) wrote:

If you are asking this then you probably are not experienced enough to be shorting a wall street gem.

 

Out of all the stocks to short, Apple isn't one of them.

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#10) On March 11, 2010 at 2:30 PM, jrod87 (85.51) wrote:

Alos thanks for helping out a noob. Ill give my broker a call and wait till AAPL is in the positve again then ill "short the stock" lol, ("95% of the time im right so why are you worried about that other 2%?")

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#11) On March 11, 2010 at 2:37 PM, Superdrol (96.41) wrote:

ROFL.  Shorting Apple stock with the iPad debuting April 3, and earnings April 22.  Worst idea ever.

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#12) On March 11, 2010 at 2:40 PM, 100ozRound (29.73) wrote:

DO NOT SHORT AAPL!!!!  It would be an expensive lesson to learn if Apple kept going up.

Think about this - a stock can only fall to zero, but (theoretically) it can go up to infinity

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#13) On March 11, 2010 at 2:51 PM, jrod87 (85.51) wrote:

LoL well Im ganan look into it. A cap sounds right with me, but for my own reasons I'll be doing it, if "With puts, there is a maximum amount that you lose - the premium - the price you pay for the option." that sound ok to me for what im willing to risk, who know's maby its the next Bearstearns or Citi

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#14) On March 11, 2010 at 2:51 PM, kdakota630 (29.90) wrote:

I'm in full agreement with Superdrol and 100ozRound.

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#15) On March 11, 2010 at 3:00 PM, 100ozRound (29.73) wrote:

If you REALLY want to short apple, look into buying some calls to counter it if AAPL prices go up.  It's called a synthetic put.  I'm not going to go deep into specific strategies so you might want to look into them on your own.

Disclaimer: I am not an investment advisor so do not consider this investing advice.

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#16) On March 11, 2010 at 3:08 PM, jrod87 (85.51) wrote:

Dont get me wrong  100ozRound you totaly answered my questions and helped me out a ton on what i thought i knew and how I can learn more. My feelings are simply that at its current price of 220-230$ a share thats its way over hyped, again in my opinion, and ill be honset Im just looking for a way to gamble with my gut huntch. Thank you to everyone who posted comments here (Yes I Am A Noob at this) but this is how we learn in life, or at least how I learn ( hard headed).

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