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Thread: Short selling is an obvious way of benefiting from market corrections.

  1. #201
    Join Date
    Jan 2017
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    Did you watch the tape today ?

    Gainers TZA, UVXY, SPXS, MIDZ...and the like Inverse ETF's

  2. #202

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    Are you familiar with the concept of leverage-induced decay?

  3. #203
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    Jan 2017
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    Apple Inc AAPL seems to be in trouble. Hard
    to short though at its huge price.

    Fortunately there is a single stock ETF, AAPD, which shorts AAPL.

    https://schrts.co/kJRQaCQF

  4. #204
    Join Date
    Jun 2008
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    3,119

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    Quote Originally Posted by oak333 View Post
    Apple Inc AAPL seems to be in trouble. Hard
    to short though at its huge price.

    Fortunately there is a single stock ETF, AAPD, which shorts AAPL.

    https://schrts.co/kJRQaCQF
    You could sell a call in a margin account. As you point out many different vehicles to play this forecast without directly shorting.

    Say you think Apple will be around 150 bucks or less come mid January of 2024. ( even if it goes down some you will make a bit)

    You could sell a call contract for around 3400 ( you get the money) at 150 expiring in January ( think Apple is around 178 now)

    You would make almost 50% annualized if it expires worthless.

    You will experience some pain if you are wrong, and it goes up significantly ( will need to contribute lots of margin)

    You can always bail out at any time (close) before that, with varying degree of profit or loss.

    Probably a good call to make but I am too conservative for these type of plays. I usually only use shorts or these type of options to hedge a position and not very often these days.
    More into incremental gains by writing covered calls and puts covered by cash.

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