Why Selling Apple Puts Beats Buying the Stock

There are lots of reasons to prefer selling puts on something rather than buying it outright, not the least of which is that you have a bit of a cushion when you write out-of-the-money puts rather than buying the underlying entity. But in the case of a big meltdown, which we are witnessing today in Apple (AAPL), the edge goes to the put writer by a considerable margin. Here's what I mean.

This morning, the stock opened right at $460. Then over the next 15 minutes or so, it sold off almost another 10 points to its current almost-12-month low of $450.66. From there it bounced back up 15 points to the morning highs of $465.73, and then it was back down again....965 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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