[DcifrThs]

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I'll help you out here. He is saying that you SELL the short term and BUY the long term, with both puts being a fair amount out of the money. Buy doing this, it is as if you are buying the long term puts at a discount as you are collecting a premium from the short term option. So, now what happens if it goes down and it doesn't make it below 105, then the short expires, you still hold the long term option and if it should go past 105, you are in the money (not necessarily profitable depending on how much this position cost you overall, we don't know that without using some numbers here, but in the money nonetheless and moving to profitable).

I agree that spreads are the way to go when playing options because of the risk mitigation. Where Apple stands now, I wouldn't mind a short on it.

Barron, quick question, in some of the posts that I do see here and on other forums, I constantly see people who do make recommendations with small disclaimers at the bottom saying that they are not responsible. Is this truly necessary? How could you be accountable if someone takes your advice and the stock goes in the opposite direction and they then lose money? You didn't make anyone buy the stock. If a stranger came up to you and said go jump off a bridge and you did it, can your then sue that guy?

THE HUN.

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last point first.

just for clarification. you don't want to make a reecommendation and somebody to take it seriously as gospel and act on it. it isn't for legal reasons on these forums imo. just courtesy to make sure you aren't going to cause somebody to take a risky position based on your post.

first point, yea that makes much more sense. it didn't seem to be logically correct the way i was stating it.

thanks,
Barron