Anthony Speciale Stock Market Analyst

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MORE MONEY, MORE QUICKLY, MORE SAFELY.

9.5% Shorting Apple Stock?

When Apple starts giving it up and falls into second place, there’s no reason not to capture the opportunity on the downside.

When the world’s most valuable company starts giving it up and falls into second place, there’s no reason not to capture the opportunity on the downside.

You see, savvy traders often “short” stocks to profit from a decline in the share prices.

That’s right. For those who are unfamiliar with shorting a stock, it’s the direct opposite of buying a stock.

The process involves borrowing the shares and selling them on the open market.

To close a short position, we buy the shares back at a lower price, return the borrowed shares and keep the difference as profit.

Remember, the market operates on a “zero sum” basis. For each buyer, there needs to be a seller.

For each seller, there needs to be a buyer in order to transact.

Put Option Play

Apple (AAPL) teed up for a short recently, as I detailed in your May 26 issue.

The benefit to trading a stock like AAPL is the liquidity in the options market.

I personally don’t short stocks, but I do buy put options, which is another way to bet on a decline in a stock’s price.

And a properly picked and timed option can return multiples of the return from the underlying stock.

So for example, a 9.5% win shorting the stock could be worth up to a 95% return on a put option.

That’s darn impressive and a real game-changer.

If you can get yourself on the right side of 10% stock moves over and over again, you can become wildly successful very quickly!

The Trade Setup

Let’s take a look at the chart, the analysis and the trade below. You can find the original AAPL chart in the previous article.

Weekly Chart of Apple Inc. (AAPL) — Source: TradingView

You can see where price action has broken the teal support structure on a weekly basis.

When this occurs, there’s a pretty good chance of continuation move. And that’s exactly what happened.

When you are on the side of the overall trend, two things happen as the trade transpires…

First, the risk decreases. And second, the reward increases.

That’s how you know you’re on the right side of the overall move.

Ideally, we want to buy the market in an uptrend, and we want to sell the market in a downtrend.

Going Back in Time

You can see that when this transpired in real time, as I published it to my TradingView.com account.

You can see the setup prior to it taking place, and then you can press “play” and see it transpire. You can also read my commentary below.

I offer you this so you can see that these moves are easily identifiable as they’re transpiring. I’m not just finding them afterwards.

The idea is to take the analysis, apply it over and over again, implement the same trade plan over and over again.

Consistency and discipline equal success in this business.

Join Us for a Special Alpha Stocks Session

Before I go, I want to personally invite you to a special LIVE presentation with my colleague and expert stock trader Ross Givens.

Ross’s premium Alpha Stocks research service focuses on only the very best stock trading opportunities — both on the long side as stocks rise and on the short side when markets are crashing.

He recently recorded a huge winning trade on the downside in only eight days as Pegasystems Inc. (PEGA) stock plunged…

He’ll talk more about his strategy in a special live session today, which you can register for by clicking right here…

Rules to Live By

“Be the change that you wish to see in the world.” Mahatma Gandhi

Until next time, I wish you a beautiful and blessed day!

Yours In Trading Success,

Anthony Speciale Jr.

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