Yikes!
I'm with the other posters wary of (careless use of) derivatives. It's scary enough that people might bet their entire livelihoods on a single company, but investing almost entirely in derivatives of a single company is insane. AAPL may have slid quite a bit, but if you bought the underlying stock at its high on Sept 19, 2012 and sold it today, you'd have lost "only" 40% of your investment (which is terrible, but still recoverable). By investing in (time-limited) call options, these folks lost essentially everything.
Edit: grammar.