4 ms·

Is it really so clear? Anyone who thinks AAPL is overvalued (including you) can make lots of money by shorting or using puts appropriately. People aren't doing

Is it really so clear? Anyone who thinks AAPL is overvalued (including you) can make lots of money by shorting or using puts appropriately. People aren't doing that, so they must not be very confident about Apple's stock price decreasing.

oliwarner 14y ago
You might want to note that I'm not saying Apple is going to implode at 15:02:32, 2nd September, 2012. I said it depends on Apple doing something wrong and I can't predict when that'll happen or what it'll be but here are some suggestions: Making the iPhone 7 out of cheese or Tim Cook farting in the wrong direction. Either way, if the markets have shown us anything in the past, it doesn't take much at the moment to send traders into sellmageddon mode.
- npguy 14y ago
  Purely in valuation terms, Apple stock is in no bubble. AAPL is trading at a P/E of 15.86 GOOG has a P/E of 20.08, for example.
deleted 14y ago
[deleted]
- msellout 14y ago
  Could you explain why? The dividend is an indication that they have too much savings. Share repurchasing is an indication that the company believes its shares are undervalued. Or am I missing something?
pwaring 14y ago
The problem with shorting is that you can make the right call broadly, but time it wrong. I think AAPL is overvalued, but I don't know when (or even if) the market will come to the same conclusion. It costs money to keep short positions open - there are several examples of people who exited short positions in the subprime-mortgage bond market just before the credit crunch. They were convinced that the market was going to crash, but they didn't know exactly when.