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Heat caramel until it becomes liquid. (Can use stove top or microwave). Roll out caramel in between 2 pieces of plastic wrap to flatten. Cut caramel into long strips, about 4 inches long, to fit around apple. Wrap caramel around apple. Stand upright on waxed paper and let set for 15 to 20 minutes.
Melt dark, white or milk chocolate. Pour melted chocolate into a metal bowl. Dip apples into chocolate. Sprinkle chocolate covered apple with nuts, M&M's or your favorite topping. You can also add stripes of dark, white or milk chocolate around the apple. Place decorated apples onto wax paper, standing upright. Refrigerate for 15 minutes.