New Options Available for Apple Inc: An Analysis of December 13 Contracts

Investors in Apple Inc (Symbol: AAPL) are greeted with fresh options today, set to expire on December 13. Stock Options Channel’s YieldBoost formula has scanned AAPL’s options chain and highlighted a notable put and call contract for attention.

The put contract at the $225.00 strike price currently carries a bid of $6.35. By selling to open this put contract, an investor agrees to buy the stock at $225.00 while collecting the premium, effectively lowering their cost basis to $218.65 (excluding brokerage fees). For those already considering purchasing AAPL shares, this option may present an appealing alternative to the current market price of $228.55 per share.

The $225.00 strike price represents roughly a 2% discount to the stock’s current trading price, meaning this contract is out-of-the-money by that percentage. There’s a chance that the put contract may expire worthless, with analytical data indicating a 59% probability of that outcome. Stock Options Channel will monitor these odds, updating a chart on our website that tracks these figures. If the contract does expire worthless, the premium would yield a 2.82% return on the cash commitment, translating to a 23.93% annualized return—what we term the YieldBoost.

Below is a chart showing Apple’s trading history over the past twelve months, highlighting the position of the $225.00 strike price:

On the calls side, the contract at the $230.00 strike price is currently bid at $7.70. Investors can also buy AAPL shares at the current price of $228.55 and subsequently sell to open this call contract, agreeing to sell at $230.00. Collecting the premium will lead to a total estimated return of 4.00%, provided the stock is called away at the December 13 expiration (again, this excludes any dividends). However, this strategy might limit potential gains if AAPL’s stock price significantly increases, highlighting the importance of analyzing both the trading history and business fundamentals.

Here’s a chart displaying AAPL’s trading performance for the past twelve months, with the $230.00 strike marked in red:

The $230.00 strike price reflects a 1% premium over AAPL’s current trading price, indicating that this call option is also out-of-the-money. There is a chance it may expire worthless, allowing the investor to retain both their shares and the premium earned. Current data shows a 50% chance of this scenario. Stock Options Channel will track and publish updates on these odds on our website, alongside a chart of the option contract’s trading history. If this covered call expires worthless, the premium would add a 3.37% boost to the investor’s returns, equating to an impressive 28.57% annualized return—also referred to as the YieldBoost.

The implied volatility for the put contract is 28%, while the call contract’s implied volatility stands at 27%. Additionally, the actual trailing twelve months’ volatility—computed from the last 251 trading days and today’s price of $228.55—is 22%. For further options contract opportunities, explore more at StockOptionsChannel.com.

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Also see:

• High Beta Stocks
• ONEW Stock Predictions
• RMR Average Annual Return

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.