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Apple: Seven Reasons Shorts Love It

7. Steve Jobs is the visionary of the century.

This one man is the single greatest asset in corporate America, which causes Apple stock to trade with a Steve Jobs premium, a variable that the shorts can use as well. Apple's stock is always vulnerable to losing Jobs.

If Steve Ballmer were to leave Microsoft (MSFT - Get Report), nobody would care; that doesn't help the shorts. Jobs is different. A hedge fund could float a factual article that gives statistics on liver transplant patients, and it might move the stock.

These seven reasons make Apple an ideal short play for sophisticated traders who want to make money coming and going. The chaos of it all can cause individual investors to become frustrated with the volatility.

Apple shares closed up $3.57, or 1.9%, to $195.43 on Friday.

Written by Jason Schwarz in Westlake Village, Calif.

At the time of publication, Schwarz was long Apple.

Jason Schwarz is an option strategist for Lone Peak Asset Management in Westlake Village, Calif. He is also the founder of the popular investment newsletter available at www.economictiming.com. Over the past few years, Schwarz has gained acclaim for his market calls on the price of oil, Bank of America, Apple, E*Trade, and his precision investing in S&P 500 option LEAPS. His book, The Alpha Hunter, is set to be released by McGraw Hill in December 2009.

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SYM TRADE IT LAST %CHG
AAPL $125.01 -0.63%
C $52.82 -0.99%
IBM $170.05 -1.01%
MSFT $46.28 -2.77%
FB $78.10 0.70%

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