New Apple Options Available: A Look at June Contracts

Investors in Apple Inc (Symbol: AAPL) will find new options available starting today, set to expire on June 6th. Our YieldBoost analysis has reviewed the AAPL options chain and identified one put and one call contract that stand out.

Put Contract Details

The put contract at the $205.00 strike price has a current bid of $9.25. By selling-to-open this put contract, an investor commits to buying the stock at $205.00. With the premium collected, this effectively lowers the cost basis to $195.75 (before broker commissions). For an investor already considering purchasing AAPL shares, this represents an appealing alternative to the current market price of $206.20 per share.

With the $205.00 strike representing about a 1% discount to the current trading price, the possibility exists for the put contract to expire worthless. Currently, analytical data, including greeks and implied greeks, indicate a 55% chance of that happening. Over time, Stock Options Channel will monitor these odds, publishing updates on their website under the contract detail page. If the contract expires worthless, the premium would yield a 4.51% return on the cash commitment, or an annualized 38.30%—a figure we refer to as the YieldBoost.

Trading History Chart

Below is a chart showing the trailing twelve-month trading history for Apple Inc, with the $205.00 strike highlighted in green:

Call Contract Overview

On the call side, the $210.00 strike price has a current bid of $7.90. If an investor buys AAPL shares at the current price of $206.20 and sells-to-open this call as a covered call, they commit to selling the stock at $210.00. The total return, minus any dividends, would be 5.67% if the stock is called away at the June 6th expiration (before broker commissions). However, if AAPL shares appreciate significantly, a potential upside might be missed. Consequently, reviewing the trailing twelve-month trading history and the company fundamentals is essential.

See below for a chart illustrating AAPL’s trailing twelve-month trading history, with the $210.00 strike highlighted in red:

The $210.00 strike represents a 2% premium to the current trading price, indicating a chance that the covered call could also expire worthless. Should this occur, the investor would keep their shares and the premium collected. Current analytical data suggest a 53% likelihood of this scenario. Stock Options Channel tracks these probabilities, providing updates and a historical chart of the option contract performance on their site. If the covered call expires worthless, the premium translates to an additional 3.83% return, or 32.52% annualized, which we also classify as a YieldBoost.

Volatility Insights

The implied volatility for the put contract is 36%, while the call contract has an implied volatility of 34%. Meanwhile, our calculations show the actual trailing twelve-month volatility, based on the last 250 trading days and today’s price of $206.20, to be 32%. For more insights into put and call options worth considering, visit StockOptionsChannel.com.

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Additional Resources:

• FFBH Videos
• Funds Holding SEVN
• WMAR Split History

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.