- I believe we are nearing an NDX rebalancing, which would result in a lot of Apple to sell. Apple is now nearly 20% of the NDX. The rule is that Apple cannot be greater than 24% the weight of the NDX but last year's rebalancing happened when Apple was 20.5% of the NDX.
- Apple is very extended and in need of a correction. We are currently in a period where people are putting their tax refunds and IRA contributions into the market. I believe a lot of that money is finding its way into Apple as it is the most loved stock out there. That period will soon be over.
If Apple rallies into option expiration I will strongly consider bearish risk reversals.