This is a split strike combo or synthetic short position. I find AAPL options to be difficult to price without something like this. I would note for anyone looking at this that I am ripping off an idea for an article I found on this site several months ago. I have paper traded it for a while and used it in real-life a few times. It has a naked position (short call) but I like it as an alternative to shorting the stock. (more…)