How much revenue can Apple generate with the buyback?
They can buyback about 4 million shares a month on average. If they were to sell 40K options with staggered expirations each month the should be able to generate about 40-50 million dollars a month in revenue some of which will be repeatable as options expire worthless. So lets just say options get called away every other month and on the months they dont they "double" down the following months. That would generate about $720-900 million a year in options premium.
Not sure how it would work from a legal standpoint, but an extra .70-.90 in eps/year couldnt hurt.
wall street journal speculates they are selling iPuts. also cisco said it bought back $1.8 billion worth of shares in the quarter so it will be marvelous to see apples q3 8-k in regards to that matter.