Apple Pie

So its time to see if the recession has slowed down iPod's and iPhone sales. AAPL reporting tonight and I would have to say any whiff of disappointment may send the shares lower than the price of an ishuffle. Earnings plays make you pay for the move in spades. One way to offset the premium is to sell time spreads. In this case, I think we see lower prices so selling the June 130 calls and buying the May 130 gets you about $2.30. I would also sell the June 100 puts and buy 2 x the May 100 puts. This will get you another $0.50 and some juice for a big miss.