Kevin BarrettKevin Barrett

How the Bubble in Apple Got So Big

The sharp decline in tech stocks, including AAPL, since the middle of last week is attributed to an abrupt end to an orgy of speculative call option buying on momentum stocks like Apple and Tesla. When this historical episode of frenzied call option buying has ended, the market will still be in a position in which most stocks are priced to deliver poor long-term returns to shareholders.