sure, that's nothing wrong about speculation as long as you know what you are doing. And you might want to write down the action plan if the market turns against you.
Yes, in-the-money puts are much more expensive, especially for high-priced stocks like Apple, Google. Thus the loss can be huge if you bet wrong.
I remember last quarter right after the earning report, a guy was showing his TDAmeritrade account on this forum. He was selling large amount of puts on Apple(forgot in-the-money or out-the money). He was raking in lots of money for sure.
