While it is always tempting to defy strength, it usually goes badly. For instance, Starbucks was a lousy stock, and I bought puts on it, and those puts doubled in value. Costco, however, is a fantastic stock, and it’s insanely overvalued (a p/e of 55 for a seller of giant mayonnaise jars and packs of AAA batteries), but I’ve lost money trying to go against it. I will say, long-term, this price looks like it’s just BEGGING to be shorted, but I’m not touching it. Maybe you should.
