Really short term Put looks attractive to sell. The 580 Put that expires on 10/22 is trading at 2.1. Selling 1 Put gives a delta exposure of +10K to Google with a down side protection up to $578. Of course if google crashes we end up with a 58K long exposure to google. If GOOG trades above 580 on 10/22 $210 is yours to keep. Will the momentum continue for a week? Apple reporting on Monday is sure to beat. The tech frenzy might just continue for another week. Shorting equivalent amount of SPY could give additional protection.
Please note this is a high risk strategy for someone working on $50K in capital. If you are working on $500K then its a different story altogether. If your risk appetite is low please keep away.
At this point options on aapl look very expensive. One could make a play on implied vol going down significantly after earnings. However constructing this position is more difficult and will require constant monitoring/re-balancing. The vol drop after earnings could be very lucrative.
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