Unveiling Interesting Options for Apple Inc
Apple Inc (Symbol: AAPL) enthusiasts witnessed the emergence of new options today, slated for the November 8th expiration. Delving into the AAPL options realm, our YieldBoost formula at Stock Options Channel identified one put and one call contract that piqued particular interest.
Put Options Analysis
Within this domain, the put contract at the $220.00 strike price allured attention with a current bid of $4.45. Contemplating the commitment to purchase the stock at $220.00 upon selling-to-open the put contract, investors stand to evoke a cost-efficient method, setting the cost basis at $215.55 (even before the weight of broker commissions). A tantalizing prospect indeed, especially for those pondering AAPL share acquisition in comparison to the prevailing $227.24 per share today.
The Bright Side of Risk
You see, the $220.00 strike embodies an approximate 3% markdown from the stock’s current trading value, standing out-of-the-money by that exact percentage. It’s not all gloom and doom, as there lies a 67% chance that the put contract might just evaporate fruitlessly. Stock Options Channel pledges to monitor these odds diligently, offering a detailed chart illustration to track the fluctuation over time on our website. In the event of a worthless expiration, the premium would yield a 2.02% return on the cash laid out, or a dazzling 17.15% annualized return — fawningly known as the YieldBoost.
Visualizing Trading History
Casting a glance at the trailing twelve-month trading narrative for Apple Inc, illuminating in green where the $220.00 strike nestles amidst that historical canvas, paints a vivid picture of strategic maneuverability for avid investors.
Call Options Evaluation
Shifting gears to the calls side of the option chain enlightens us about the call contract at the $230.00 strike price, garnering a current bid of $6.50. Should an investor leap into the realm of AAPL shares at the current value of $227.24 per share and engage in a “covered call” by venturing into selling-to-open that call contract, they are essentially committing to unloading the stock at $230.00. Musing over this manifold, the call seller inflates returns (sans dividends) by 4.07% if the stock succumbs to the call allure at the November 8th expiration (sans broker commissions).
Treading Cautiously
A prudent step to take, pondering the potential windfalls left on the table if AAPL shares skyrocket skyward, beckons a thorough scrutiny of Apple Inc’s trailing twelve-month trading legacy. Here, a chart unfolds AAPL’s yesteryears, brimming with red hues that pinpoint the $230.00 strike, narrating a tale of prudent navigation across the financial seas.
Contemplating the $230.00 strike presents an approximate 1% premium over the current stock price, a strategy that potentially renders the covered call contract obsolete. Should this situation unfold, the investor clutching onto both their stocks and the seductive premium can revel in keeping their possessions. Scouring the realms of analytical data, Stock Options Channel reveals the existing odds of such a scenario at 53%. Embark on a visual odyssey on our website, illustrating the changing fortunes over time and manifesting in an extensive chart detailing the option contract’s trading history. In the event of a bottomless expiration, the premium unveils itself as a 2.86% boost, sporting an additional 24.26% annualized return, christened the YieldBoost in our vocabulary.
Volatility Insights
The implied volatility in both the put and call contracts hovers around the 26% mark. Whereas, the verified trailing twelve-month volatility, mulling over the last 251 closing values alongside today’s $227.24 price, tallies up to 22%. Venture forth into the realm of put and call options galore at StockOptionsChannel.com for a treasure trove of thoughtful investment ideas.