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Advanced AAPL BPS Trade Alert

|Includes:Apple Inc. (AAPL)

Strategic Mindset:Flat to upward Bias

Target:AAPL trading @ $665.32

Commit Criteria: AAPL Implied Volatility is overpriced relative to its forecast volatility of 2.83% over the trade period. We are looking for flat to upward possible price movement but for it to stay above $645.00 until the exit of this trade.

Tactic:Opening 5 AAPL September 2012 Bull Put Spreads (strikes [640/645]) for a $0.60 credit

Tactical Employment of Bull Put Spread:

- Selling to Open 5 AAPL Sep 2012 $645.00 Puts

- Buying to Open 5 AAPL Sep 2012 $640.00 Puts

- Net Credit: $60.00 per Bull Put Spread for a total of $300.00

- Max Gain: $300.00

- Max Risk: -$440.00 per Iron Condor for a total risk of -$2200.00

Mid-Course Guidance:

We will be watching for a price movement near the short strike. As the short strike is threatened we will adjust the Bull Put as necessary.

Profitability Target:

We will wait for this Bull Put to expire worthless taking the $300.00 credit as profit.

Exit Tactic: We will wait for this Bull Put to expire worthless, adjusting as necessary.

Disclosure: I am short AAPL.

Additional disclosure: We are looking to enter this position in our Advanced Model Portfolio at Top Gun Options

Stocks: AAPL