Investors in Apple Inc. (AAPL) saw the debut of new options trading today for the March 23 expiration date. A notable put contract at the $250.00 strike price has a current bid of $2.72, offering a potential purchase price of $247.28 after considering premium collection. This represents a 2% discount to AAPL’s current trading price of $255.72, with a 63% implied probability that the contract could expire worthless, yielding a 1.09% return or 28.37% annualized.
On the calls side, the $260.00 strike call contract is bidding at $2.76. If investors buy shares at $255.72 and write this covered call, they could see a total return of 2.75% if the stock is called away by expiration. There is also a 60% chance the contract will expire worthless, allowing investors to retain both the shares and premium, translating to an additional 1.08% return or 28.14% annualized. Current implied volatilities are 34% for the put and 33% for the call contracts.
