Cousin Calvin

Costco: Wholesale Profits with an Option Combination

I'm ok with these moves. However if I were to do this exactly as you have laid it out, Fidelity would place $50,000 in a Put Reserve to cover the potential of being Put on the 1,000 shares at $50.
So now I would have $85,600 set aside for a year for this trade. That is a return of 23% on committed cash under the best case.
Using your same stock investigation logic I would just sell the $50 Puts with a closer expiration date than Jan 2010. You could sell puts at least 3 times before 1/2010 and still clear the $20,000, with only $50,000 committed.
Thanks