Something else to consider is the price of the puts, which reflect some implied volatility, or downside risk to the stock that'd work against you in the trade. If the puts are not priced high enough to cover future expected losses, then it's a losing bet, no matter what we think of the fundamentals of AAPL.
Further, this is all just probability, but for the average trader realized losses up front can be devastating even if long horizon expected returns are positive.
I'm a fan of augmenting portfolio strategies with options, just need to consider all angles.
Here are some additional resources :
http://growthstockwire.com/3329/how-to-collect-the-world-s-safest-double-digit-yields
http://growthstockwire.com/4047/you-can-safely-earn-double-digit-annual-income-streams
I am just trying to create the same strategies for the Steem Community free of charge.
The more the put selling strategy is studied and understood, it seems to be to be a safer alternative to buying the stock outright. However, the strategy works best when you actually want to own shares in the company at the strike price that the put option represents. Then it is really a win win as you either, at expiration, own the stock at a lower price than the current market is offering or you keep the option premium and are able to sell a future months option to generate more income.
yeah it's certainly an interesting strategy, the long run returns should be about the cost of insurance that market participants are willing to pay to protect their own downside. expected returns should oscillate around that with prolonged periods of higher returns and intermittent periods of sharply lower returns (relative to underlying). Stocks, themselves, have positive expected returns over long horizons, so i can't image the spread in this type of strategy being much higher than that + an insurance premium...or maybe just the insurance premium. Anyway, def worth looking into more and having fun trading...i enjoy options trading myself, but haven't seriously researched long horizon expected returns for this strategy.