New AAPL Options Available for December 2027 Expiration
Today marks the introduction of new options for Apple Inc. (Symbol: AAPL), set to expire in December 2027. Investors should consider the time value associated with these options, especially since there are 1,009 days until expiration. This timeframe presents sellers of puts or calls an opportunity to command a higher premium compared to contracts with nearer expiration dates. Stock Options Channel has identified notable contracts within the AAPL options chain.
Put Contract Opportunity
Focusing on the put contract at the $210.00 strike, the current bid stands at $27.25. An investor selling this put contract is agreeing to buy AAPL shares at $210.00, while collecting the premium. This would effectively lower the cost basis to $182.75 (prior to broker commissions). For investors interested in AAPL, this presents a favorable alternative to the current share price of $214.31.
The $210.00 strike represents approximately a 2% discount to the present market price, making it out-of-the-money. Current analytics indicate a 69% chance that the put contract may expire worthless. Over time, Stock Options Channel will monitor and publish how these odds fluctuate, along with a chart detailing this information on our website. Should the contract expire worthless, the premium would yield an impressive 12.98% return based on the cash commitment, or an annualized rate of 4.69% — this is referred to as YieldBoost.
Below is a chart detailing the trailing twelve-month trading history for Apple Inc., with the $210.00 strike price highlighted in green:
Exploring Call Contracts
Turning to the call side, the $260.00 strike price call contract is currently bid at $28.35. If an investor purchases shares of AAPL at the current price of $214.31 and sells this call contract as a covered call, they commit to selling the stock at $260.00. Including the collected premium, the total return (excluding potential dividends) would be 34.55% if the stock is called away by December 2027 (before broker commissions). However, potential upside remains if AAPL shares rise significantly, highlighting the importance of analyzing both trading history and business fundamentals.
Here is the chart showing AAPL’s trailing twelve-month trading history, with the $260.00 strike noted in red:
The $260.00 strike represents about a 21% premium to the current trading price, positioning it as out-of-the-money. There is a possibility the covered call may expire worthless, allowing the investor to retain both the shares and the premium. Current data suggests a 49% chance of this outcome. A detailed tracking of these odds and the trading history of the option contract will be available on our website under the contract detail page. If this covered call were to expire worthless, the premium would yield a 13.23% additional return for the investor, or 4.79% annualized, also referred to as YieldBoost.
Meanwhile, implied volatility figures show 30% for the put contract and 26% for the call contract. In contrast, the actual trailing twelve-month volatility, considering the last 250 trading days and the current price of $214.31, is calculated at 24%. For further options insights, visit StockOptionsChannel.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
