I need serious help... please help..... I'm truthfully speaking here so I please be kind.
I would look at selling the JAN 2015 350 put options. There is tremendous support above this number and the premium paid to you will be about $3200 per contract. You will have to watch the action in the stock, as there is a gap up in the price at $405 and AAPL may drop some more to back fill the gap. If it does the premium on the $350 contract will move higher. Search the term option pain and do some research. 95% of call and put option buyers will lose their money!!!!!
That is a fact. I only sell put options on stocks that pay dividends of 3% or greater and find strike prices that are based on prior lows and only on stocks that have had really nice pullbacks but have sound earnings and business. I have yet to lose money on this strategy.
This sounds like a good strategy to sell puts. So if I short a 350 put, this means that I get to keep the premium and the only time I am obligated to buy it at 350 strike price is if it reaches 350 by option expiration in 2015 ? correct ?
If it doesn't reach 350, then I'm safe and I get to keep the $3200/ contract ?