techy

Apple Credit Spreads: Targeting 500% Return

i sold Jan 2010 strike 90 puts for $12.

which means i am protected from loss all the way till apple drops to 78, at which point i can choose to go long apple.

i hedged that position by buying one strike 80, Jan 2009 puts, for around $100 (yes its expensive, but if apple tanks below $90 due to high volatility, i can sell this put and wait for recovery).

my margin requirement for above position is only $2000.

and i dont have pray for apple to go up a lot...