gbh, I have 3 portfolios. One is the 90/10 that uses long options. One is the cap app that is long stocks, bonds, cefs and commodities. The last and largest, is the income portfolio. This put originated with the idea that Dellamaniacs were bidding up calls so wildly that one could buy the stock, sell an at the money Leap call, and buy an out of the money Leap put and guarantee a positive return in any environment. Since the worst case was plus 2% a year and the best case was a huge return when annualized, I tend to jump on these situations in my income account.
However, after the stock rose because business was getting worse, <g>, I sold the stock and bought back the call at a profit, leaving me just long the put. I transferred the long put from income to 90/10. But, I don't really like high priced options in 90/10, so when it got close to even, I punted it. It was net/net a mediocre trade, but a modest winner. I usually do much better on these things, even with Dell. And my Lucent, Incyte, Keane, Sangstat and CCU spread conversions were infinitely better.
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