Unlike with Research In Motion ( BBRY) and Nokia ( NOK), investors can't blame short-sellers this time. Well, maybe we can blame short-sellers for not shorting more shares, which may have helped support Apple while it declined. Even after the epic drop in share price, Apple doesn't have a lot of short interest. Short-sellers receive a lot of unjustified criticism, but Apple is a good example of what happens when a stock doesn't have the stability and reduced volatility that short-sellers create. Fortunately for investors, Apple's volatility is a tool you can use for profit.
Russell Rhoads is an expert on exploiting market volatility and literally wrote the book on volatility. It's titled Trading VIX Derivatives: Trading and Hedging Strategies Using VIX Futures, Options, and Exchange Traded Notes. If you want to learn how volatility may help your portfolio, I'd strongly recommend you it. Although it may not appear that a book about trading VIX futures is relevant for Apple investors, the volatility concepts are the same. As an Apple investor, you can use your Apple shares to hedge selling Apple volatility.
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