What do we do with $3M in cash in the LTP?
Buy AAPL, of course!
For the LTP, let’s:
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- Sell 10 AAPL 2028 $250 puts for $20 ($10,000)
- Buy 20 AAPL Dec 2028 $300 calls for $53.50 ($107,000)
- Sell 15 AAPL Dec 2028 $370 calls for $30 ($45,000)
- Sell 7 AAPL Sept $300 calls for $8.50 ($5,950)
- Sell 5 AAPL Sept $270 puts for $9.20 ($4,600)
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That’s net $41,450 on the $140,000 spread with $98,550 (237%) upside potential PLUS 9 more chances to collect $10,550 in premium is another $94,950 (229%) and we’ll call that a starter as AAPL almost always ends up being a huge position (because every time we adjust, we tend to get more bullish) and this is the first time in a long time we’ve liked an entry point.
🚢 You’re not “wrong” in the sense of being reckless with garbage — AAPL is a phenomenal business and your structure is thoughtfully designed. You are consciously overriding valuation discipline and making a big, concentrated bet that the next AI hardware cycle will bail out a 30× P/E, and that’s a choice, not an accident.
I’ll break it into three points: the structure, the valuation/fundamentals, and where the risk really sits.
1. The structure itself
Mechanically, what you sketched is very much on‑brand for the LTP:
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- Stock around $275–280 after a pullback from the $300+ highs.[finance.yahoo]
- You’re building a $300/370 vertical plus short near‑term calls and puts, financed by a 2028 $250 short put.
- Net outlay $41,450 on $140,000 of vertical value → about 237% max upside if AAPL is ≥$370 in late 2028, plus a plan to sell ~$10.5K of front‑month premium nine times over two years.[livemint]
From a structure standpoint:
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- Long calls are 10–15% OTM, not lotto tickets.
- Short calls/puts are near the money today but staggered in time (Sept vs Dec 2028).
