With all the pain, it’s no surprise that few are just betting outright that Apple stock will fall. S3 said most current short interest in Apple stock is market-related portfolio heads or hedges for derivative securities. The firm added that core short interest in the name ranges from $4.5 billion to $7 billion, so in order to say there’s “an appreciable” number of short-sellers betting on a share price decline, interest would have to trend past $7 billion.--ValueWalk
A lot of people don’t exactly understand how you make money on shorting stock so here’s a simplified description:
Say you had a rich uncle who just bought a new 2017 Corvette Stingray and he paid $80K for it. You ask him if you could borrow it for a year and he says yes. As soon as you get it you sell it for $80K. One year later, knowing that you need to return your uncle’s car you go out to buy another one. Only now with a year of depreciation you are able to purchase the exact same model used for $60K.
You return the car to your uncle and get to keep the extra $20K you made on the deal. Cars always depreciate so there was little doubt that the value of a Corvette would go down with time.
But stocks aren’t like that. They could go up just as easily. If you borrowed that car from your uncle and it cost you $100K to buy another one a year later then you just lost twenty thousand dollars.