For anyone wanting good option practice on the Virtual Trader, Aapl
has been great for placing puts & calls, interesting to follow, and
great all around experience (I would not place Aapl options myself in
real life starting out since it's very expensive). Over the past
several weeks, I have placed many options on aapl but the last 10 days
were especially fun! All at 1 contract:

Note: After researching, I decided I would be fine purchasing the
stock if it was Put to me at any of the Put prices. Even if I had to
hold it awhile for call opportunities, I would have been fine with
that. Each time I Closed the option, it was because I felt the premium
had fallen enough so that I could turn around & Sell to Open another
option quickly at a good price (at or above 20%). I was really looking
for opportunities to practice & learn & it was a great 10 days for that!

Sept 4: Buy to close a 650 Put (I sold to open on Aug. 30) 290.05 -
109.95 (to close) = 180.10 net 20% APR

Sept 4: Sell to Open Aapl Sept 22 650 Put $7.55
Sept 7: But to Close Aapl Sept 22 650 Put $3.50 740.05 -
364.95 = $375.10 net gain

Sept 6: Sell to Open Aapl Sept Wk 2 675 Call $11.10 Net
$1095.05
Sept 14: Was called away at $675 - .15 assign = $674.85
(I had the stock Put to me on Aug 31 for a net price of $668.19 net)
$674.85 - 668.19 = 6.66 (ok, number a little creepy) earned per
share. $666 + 1095.05 = $1761.05 net gain

Sept 7: Sell to Open Aapl Sept Wk2 665 Put $3.90
Sept 13: Buy to Close Aapl Sept wk2 665 Put $1.44 $390 -
$144 = $246 - 29.90 = $216.10 net gain

Sept 13: Sell to Open Aapl Sept 22 660 Put $4.15
Sept. 14: Buy to Close Aapl Sept 22 660 Put $1.00 $400.05 -
114.95 = $285.10 net gain APR 150% Note: I decided to close
today since stock went way up to $693 after great iphone coverage all
week and I thought it might adjust lower by next week. So I decided
to close, take the 150% APR, and look for more Put opportunities next
week.

Have fun & learn lots!!

Theresa

This is a totally un-researched question based upon too little factual
knowledge.

If we have a typical cash position in our account and want to achieve a
return by selling a CSP, why would you strive for anything higher than
say double the inflation rate? something like 6% APR for a thirty day
stretch is a very reasonable return IMHO.

I was thinking of writing a couple CSP so far out of the money that
there is a very low probability of hitting the strike price, but returns
a calculated 6% return for the time I'll be on vacation. Say, 2x FAST P
35.00 10/20/2012 at $0.30 (6% APR, net $51.05)

Stock would have to go through an unlikely 20% correction for the put to
be exercised.

I just renewed a CD for four years at 0.70% (there are legal reasons,
I'm not completely bonkers), so 6% in 30 days, well, it sounds pretty
darn good for this here greenhorn.

Malcolm