July 1st, I bought BRS Dec 2010 $30 calls for $3.00 per share.
Today, I bought Sept 2010 $43 puts on QQQQ (the Nasdaq long index) for $2 per share. I happen to own a lot of tech right now, so this is insurance. Most of that tech is owned in the form of 2012 calls, so there is relatively little capital at risk (versus owning the stock outright). The Nasdaq puts would cover loss of the option premiums. In the best of all possible worlds, the Nasdaq would decline by September, but recover (along with my individual tech stocks) by 2012. By September I would exercise my puts, covering the loss of option premiums, and in 2012 I'd exercise my calls, getting the techs essentially for free.
Worst case, the Nasdaq rallies through September (leaving my puts worthless) then declines through 2012 (taking my tech stocks with it, and leaving the calls worthless) and I lose the premiums paid for both sets of options.
