Shareholders of Apple Inc. (AAPL) can enhance their income by selling a covered call on the stock with a December 2028 expiration at a $370 strike price. The current bid for this call option is $19.50, providing an annualized return of approximately 2.6%, resulting in a total potential annualized yield of 3.1% if AAPL shares are not called away. This strategy could yield a 52.9% overall return, including dividends, if the stock rises and is called.
As of recent trading, AAPL’s stock price stands at $254.41, and to reach the $370 strike, shares would need to appreciate by 45.2%. The company’s volatility over the past twelve months is recorded at 31%. Additionally, in a broader options market overview, 692,500 put contracts and 1.42 million call contracts were traded among S&P 500 components on Monday, resulting in a put-to-call ratio of 0.49, indicating higher call volume relative to puts.
