I am bullish on AAPL, but not bullish on the market.  Who knows what's
going to happen.  If this is like 2002 it could be bouncing 10% right
now just to sell off another 20% by next summer.  Either way, I'm
happy making 100% returns in a fairly low risk play I believe.

Many people think...no...no...no...no...no I'm not going to deal with
naked options, but hear me out.

Sell January 2009 Naked Puts on AAPL Strike price 110.  The premium is
13$.  What does this mean?
Basically you will buy Apple from anyone for $110 til January
2009....so your net cost is an Apple share for $97.  Shoot, I'd be
comfortable holding on to shares at that price if a nuclear bomb hit
Cupertino.

The margin requirement for such a trade is that you hold 10% of the
strike price in cash in your account.  So basically, for every $1100
cash you have in your account, you can sell 1 contract for a $13
premium....so you will take in $1300.  Now of course you do not have
the right to the premium until the contract expires, or you buy back
the puts.

This strategy lets you make money in two ways.....
1) Hold to maturity and make you 118% as long as Apple does not close
below 110 in January 2009.
2) If Apple shoots up to say 150 in the next month, these will be
worth about $7 each....so buy them back and make your 50% profit in
one month...or however long it takes.

I did this last week.  I sold 10 conracts of July 2008 for $8.5 each
strike price 110.  I bought them back for $7.05 when Apple went to
136.  I sold March 125 for $7.5 each and bought them back for $5.  But
I am trying to say what I think a good conservative strategy would be.

Think about it, let me know what you think....maybe I'm nuts.