I cannot help but short Apple. It looks like it is approaching some extreme bullishness, a capitulation type of price action. I think it is at its top at least in the very near term. So I did it but cautiously.
As I said, shorting stocks is very difficult in general and it is more so for stocks like Apple when the underlying euphoria for it is so strong that may push it up further. Therefore I did it with a small position and will exit if it looks like I'm wrong. Also via selling call options, I gave myself a quite large margin, that I will lose money only if Apple jumps up beyond $655 (around $600 at the moment) in the next 7 weeks.
If Apple indeed declines over the next few weeks, which I do expect, I will consider to do the opposite trading that I will sell put options to get in for long positions.
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