Instead of buying Apple shares directly, investors can lower their risk while getting paid for their time by using options. With the price of one Apple share near $500, it's not easy for many investors to buy Apple without upsetting their diversification balance. Even with standard options it can be tricky.
Say hello to a new option product called mini-options. Instead of using a full lot of 100 shares per contract, mini options use 10 shares as their underlying contract size. This allows for greater investor flexibility.
, I currently advise selling the November $450 Put option to collect premium while allowing some breathing room for Apple to move. This strike and expiration can be sold for about $7.35 per contract. Apple needs to decline below $442.65 at the expiration for this strategy to lose money. Otherwise, if Apple is $450 or higher at the expiration, the premium is your profit.
At the time of publication the author had no position in any of the stocks mentioned.
This article was written by an independent contributor, separate from TheStreet's regular news coverage.