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Let me be more specific:

Aapl was trading today between $91.86 - 94.7.
A 50 day put sell with a strike at $75 would give me $3.80/share or a cost basis (should the stock fall to $75 in the next 50 days) of $71.20. Those prices were last seen in mid 2006.

At the same time Apple has no debt, great momentum, good margins, and products that cover a range from reasonable to obscenely expensive.

Also a minor tidbit which may not mean much to anyone outside my industry: Rhinoceros 3D, one of the least expensive, good 3D design software packages is going to be launching for OSX in the next year. Not having a good 3D package is the number one reason that some designers have been stuck on a PC for years. Not a huge market, but look at how heavily tied Apple has been to graphic design for years, and what a solid market that has been!

In the next year or so it will be tough, if I look at a 3 - 5 year position I think that I will do fine on this, and in the meantime I will go ahead and write calls if I do land the security!

I agree that 7k is a lot, but I look at my portfolio as encompassing other investment and retirement accounts as well as my Pro $s.

My key question though, is, do I understand the selling of puts correctly:

If I 'sell to open' a put for the $75 strike at $3.80 a share, I would make $380, right?

BD
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