Unveiling August 23rd Options for Apple Inc
Today marks the commencement of trading for new options expiring on August 23rd for Apple Inc (Symbol: AAPL). Investors now have the chance to engage with the options market and explore potential opportunities for the tech giant.
Delving into Put Options
One intriguing option to consider is the put contract at the $215.00 strike price, currently carrying a bid of $3.50. Investors selling-to-open this put contract are looking at a cost basis of $211.50, presenting a compelling alternative to the current market price of $219.21 per share. With a 2% discount to the current stock price, there is a 67% chance the put contract may expire worthless, offering a 1.63% return on cash commitment or 11.65% annualized.
Visualize the $215.00 strike in relation to Apple’s trading history through the provided chart below:
Exploring Call Options Potential
On the calls side, the call contract at the $230.00 strike price presents an intriguing opportunity with a current bid of $4.45. By executing a covered call strategy, investors can aim for a total return of 6.95% if the stock reaches $230.00 by the August 23rd expiration. However, there is a 63% chance the covered call contract might expire worthless, providing a 2.03% boost in return or 14.53% annualized.
Take a glimpse at Apple’s trading history in relation to the $230.00 strike through the chart below:
Analyzing Volatility and Opportunity
The implied volatility stands at 23% for put options and 24% for call options. Meanwhile, the trailing twelve-month volatility, considering the past 251 trading days and current price, is calculated at 22%. These metrics provide valuable insights for investors navigating the options market.
For more in-depth options contract analysis and ideas, investors can explore further at StockOptionsChannel.com.