New Apple Options Spark Interest Ahead of November Expiration
Key Trading Opportunities for Apple Inc. Investors
Investors in Apple Inc (Symbol: AAPL) have new options available for trading today, with a November 29th expiration date. At Stock Options Channel, we’ve analyzed the AAPL options chain and found one put and one call contract that may capture investor attention.
The put contract at the $225.00 strike price currently has a bid of $6.40. If an investor decides to sell-to-open this put contract, they commit to purchasing the stock at $225.00 while earning the premium. This lowers the effective cost basis of the shares to $218.60 (excluding broker commissions). For those already considering buying AAPL shares at the current price of $228.29, this presents a potentially appealing alternative.
Given that the $225.00 strike is roughly 1% below the current trading price, there’s a chance the put contract may expire worthless. Analytical data indicates there is a 60% probability of that occurring. Stock Options Channel will monitor these odds over time, providing updates on our website. Should the contract expire worthless, the premium would yield a 2.84% return based on the cash commitment, translating into an annualized return of 20.75%—this is what we term YieldBoost.
Below is a chart displaying the last twelve months of trading activity for Apple Inc. The green area indicates where the $225.00 strike is positioned relative to that history:
Covered Call Strategy: Evaluating the $230 Strike
Turning to the calls, the contract at the $230.00 strike price has a current bid of $7.75. By purchasing AAPL shares at $228.29 and then selling the call contract as a “covered call,” an investor agrees to sell the stock at $230.00. This would result in an estimated total return of 4.14% (excluding dividends) if the stock is called away at the expiration on November 29th. However, substantial gains could be missed if AAPL shares increase significantly, underscoring the importance of examining both past trading history and company fundamentals. The chart below highlights the $230.00 strike price in red against AAPL’s last twelve months of trading history:
The $230.00 strike price is about a 1% premium over the current trading price. Thus, there is a chance that the covered call could also expire worthless, allowing the investor to retain both the shares and the collected premium. Current data suggests a 50% probability of this happening. Stock Options Channel will keep track of these odds, detailing updates on our website. If the covered call expires worthless, the premium would offer a 3.39% return boost to the investor, equating to an annualized return of 24.76%—again classified as YieldBoost.
For context, the implied volatility for the put contract is 26%, whereas call contracts have an implied volatility of 25%. The actual trailing twelve-month volatility, considering the last 251 trading day closing values and today’s price of $228.29, stands at 23%. For additional options contract ideas, visit StockOptionsChannel.com.
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The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
