As a new spread on AAPL, I'd go for:
- Sell 15 June 2020 $185 puts for $11 ($16,500)
- Buy 80 June 2020 $180 calls for $54.50 ($436,000)
- Sell 80 June 2020 $240 calls for $22 ($176,000)
- Sell 40 Jan 2019 $210 calls for $18.20 ($72,800)
That $480,000 spread that's $320,000 in the money nets you in for $170,700 but, hopefully, it will produce a pretty steady $40,000 per q in profits while you wait and whittle that $170,700 down quickly. If AAPL goes lower, the short calls go worthless and you sell more for another $80,000 and then you have $10 per long to roll down $20 and widen the spread. If AAPL goes higher, just remember to stop 1/4 over $20 and 1/4 over $25 so you would only be 1/4 covered (easy DD roll) if AAPL made a big move up.
I prefer the smaller, more manageable size to start as you can easily DD on these if you have to and they'll still make over $300,000 (200%) in two years with not much of a move from AAPL required.
This is a HNW trade for large portfolios, of course. You may want to divide the amounts by 5 or 10 to size it for a more modest portfolio and, don't forget, you have to REALLY want to own AAPL for $185 to sell the short puts!
