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Apple Inc (NASDAQ: AAPL) shareholders can enhance their income by selling covered calls on the January 2028 contract at the $380 strike. This strategy could yield an annualized return of 2.5% from a $15.05 premium, totaling a 2.9% return when combined with the company’s current 0.4% annualized dividend yield if the stock isn’t called away. If Apple shares rise above $380, a 41.4% increase from current levels, shareholders would see a 47% total return including dividends before the stock was called.
As of mid-afternoon trading on Tuesday, October 10, 2023, S&P 500 components noted a put volume of 761,960 contracts against a call volume of 2.05 million, resulting in a put:call ratio of 0.37. This figure suggests significantly higher call activity compared to puts, indicating a preference for bullish positions among options traders.
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