I know I didn't actually make a synthetic AAPL holding through options (for those too lazy to follow the link: I would have had to be buying the same calls as the puts I sold). After repeatedly moving up my naked puts during this rally, I'm sure many would say why didn't you just buy AAPL at $95. Well, I wasn't expecting a 50% rally in 3 months.
If my current AAPL $125 put were exercised I would enter an AAPL position with a cost basis of $114.81. I put in an order to sell the $140 AAPL Oct '09 put for $15, which is marked at $14 right now, and I expect will get filled on any decent pullback. Assuming the July put expires and the Oct 09 order is filled, if AAPL were put to me at $140 I'd still be buying in for $114.81.
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