The $9.95 premium you collected acts as a partial hedge. You do not start losing money on the overall trade until AAPL dips below $560.05. That's because the $9.95 premium offsets the $570 you would have to pay to buy AAPL if put shares . If AAPL runs or closes above $570 at expiration, you keep the premium; however, if your goal was to get long the stock you will have to make that happen some other way. Follow @RoccoPendola At the time of publication, the author held no positions in any of the stocks mentioned in this article. This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.