Book-keeping

Just to keep myself honest, here's a portfolio update.

I got out of the Dec SPY 116 call for almost the same price I got in for a while ago.

Currently:

-1 AAPL 165 Jan '10 Put: sold at $15.25, now at $4.50

-1 AAPL 180 Apr '10 Put: sold at $20, now at $14.425

-1 AAPL 220 Jan '11 Put: sold at $50.20, now at $49.925

-1 $2.50 Jan 2011 C Put Option @ $1.55, now at $0.235
-2 $2.50 Jan 2011 F Put Option @ $1.28, now at $0.215

The 220 Jan '11 AAPL Put that I recently sold represents a new strategy, selling deep ITM puts. It also represents what should be my last move for AAPL for the rest of 2009 and 2010. As the other puts expire I will start opening positions in other companies to diversify as the "sure" gains from AAPL will have run their course at valuations above $220.

I don't know why I didn't sell deep ITM puts on AAPL before, but this is how I view it now. I view selling deep ITM puts as a way of buying into a stock at a discount with a set sell price. I guess that's because it's Equivalent to a covered call, but I like the put more because you don't have to pay margin interest if you don't have the cash to buy underlying for the covered call.