New AAPL Options Available: Investment Insights for April 11th

Investors in Apple Inc. (Symbol: AAPL) now have new options to consider as of today, particularly for the April 11th expiration date. At Stock Options Channel, our YieldBoost formula has analyzed the new April 11th contracts and identified noteworthy put and call options.

Put Options: A $225.00 Strike Price Opportunity

The put contract at the $225.00 strike price currently has a bid of $2.58. If an investor chooses to sell-to-open this put contract, they would be agreeing to purchase the stock at $225.00. Additionally, the investor collects the premium, which would reduce the effective cost basis of the shares to $222.42 (excluding broker commissions). For those considering buying AAPL shares, this may represent a more favorable alternative compared to the current market price of $241.32 per share.

This $225.00 strike price equates to a roughly 7% discount from the current trading price, indicating that the option is out-of-the-money by that percentage. Current data indicates there is a 77% likelihood that the put contract could expire worthless. Stock Options Channel will monitor this probability over time, updating a chart on our website under the contract detail page for this option. Should the contract expire worthless, the premium would yield a 1.15% return on the cash commitment, equating to a 9.74% annualized return—referred to as the YieldBoost.

Below is a chart showing the trailing twelve-month trading history for Apple Inc., highlighting the location of the $225.00 strike price:

Call Options: Exploring the $245.00 Strike Price

On the call side of the option chain, the contract at the $245.00 strike price is currently bid at $5.80. If an investor buys AAPL shares at the current price of $241.32 per share and then sells-to-open this call as a “covered call,” they effectively agree to sell the stock at $245.00. This strategy, considering the option premium, could yield a total return of 3.93% if the stock is called away at the April 11th expiration (before accounting for broker commissions). However, significant upside could be forfeited if AAPL shares appreciate greatly, necessitating a careful review of both the trailing twelve-month trading history and the business fundamentals.

Below is a chart illustrating AAPL’s trading history with the $245.00 strike price highlighted in red:

The $245.00 strike represents an approximate 2% premium over the current trading price, making it out-of-the-money by that percentage as well. There is also a possibility that the covered call could expire worthless, allowing the investor to keep both the shares of stock and the premium collected. Current analytical data indicates there is a 57% chance of this happening. We will continue to track these odds on our website, along with a chart detailing the trading history of this option contract. Should the covered call expire worthless, the premium would provide a 2.40% additional return for the investor, amounting to 20.42% annualized — another example of the YieldBoost.

Both the put and call contracts exhibit an implied volatility of approximately 26%. In comparison, we have calculated the actual trailing twelve-month volatility, based on the last 250 trading days and the today’s price of $241.32, at 24%. For additional put and call options worth exploring, visit StockOptionsChannel.com.

Top YieldBoost Calls of the Nasdaq 100 »

also see:

• QTI Historical Stock Prices
• Top Ten Hedge Funds Holding BKTI
• LKAI Insider Buying

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