New Apple Options Highlight Potential for Investor Returns

Investors in Apple Inc (Symbol: AAPL) now have new options available with an expiration date of June 13th. Our YieldBoost formula has analyzed the AAPL options chain, pinpointing one put and one call contract that merit attention.

Put Contract Insights

The put contract at the $210.00 strike price currently offers a bid of $8.15. Selling to open this put contract means committing to purchase stock at $210.00. After collecting the premium, the adjusted cost basis for shares would be $201.85 (before broker commissions). This approach could be appealing for investors looking to buy AAPL shares, especially given the current share price of $211.78.

Notably, the $210.00 strike represents about a 1% discount to the current trading price, indicating it is out-of-the-money to that extent. Current analytical data suggests a 55% probability that the put contract could expire worthless. We will track these odds over time, publishing updates on our website.

Premium and Return Potential

Should the put contract expire without value, the premium collected would yield a return of 3.88% on the cash commitment, equating to an annualized return of 32.94%, which we term YieldBoost.

Below is a chart illustrating the trailing twelve-month trading history for Apple Inc, with the $210.00 strike highlighted in green:

Call Contract Analysis

On the call side, the $215.00 strike price has a current bid of $7.85. If an investor buys AAPL shares at $211.78 and sells to open this call contract as a “covered call,” they agree to sell the stock at $215.00. Collecting the premium results in a potential total return of 5.23% if shares are called away at the June 13th expiration (before broker commissions).

However, significant upside may be left untapped if AAPL shares increase beyond this price. Assessing both the twelve-month trading history and business fundamentals is crucial. Below is a chart showcasing AAPL’s trading history, with the $215.00 strike marked in red:

Expiry Risk and Additional Insights

The $215.00 strike represents approximately a 2% premium to the current trading price, indicating it is out-of-the-money by that margin. There’s a 53% chance that the covered call might expire worthless, allowing the investor to keep their shares and premium collected. If this occurs, the premium could contribute an additional 3.71% return to the investor, annualized at 31.46%, also referred to as YieldBoost.

The implied volatility for the put contract stands at 34%, while the call contract shows an implied volatility of 33%. Our analysis calculates the actual trailing twelve-month volatility—based on the last 250 trading day closing values and today’s price of $211.78—at 32%.

For more insights on put and call options contracts, additional options can be explored further.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of any affiliated institutions.