Exploring Investment Opportunities
Investors eyeing Apple Inc (Symbol: AAPL) have new options to consider with the recent availability of contracts for the November 22nd expiration date. At Stock Options Channel, a notable put and call contract have emerged as potential points of interest.
Delving into the specifics, the put contract at a $200.00 strike price currently commands a bid of $1.74. Opting to sell-to-open this put contract entails the commitment to buy the stock at $200.00 while obtaining the premium. This effectively lowers the cost basis of the shares to $198.26, providing an enticing proposition for those contemplating an AAPL purchase.
If the $200.00 strike represents an approximate 11% markdown compared to the current stock price, there is a likelihood that the put contract could expire worthless. Based on current data, including greeks and implied greeks, the odds of such an outcome stand at 85%. Stock Options Channel will monitor these probabilities over time, depicting the fluctuations through a visual representation on their platform. Should the contract render void, the premium amounts to a 0.87% return on the cash commitment or 6.35% annualized, dubbed the YieldBoost.
Examining Historical Trends
A comprehensive chart showcasing the twelve-month trading history of Apple Inc illustrates the positioning of the $200.00 strike relative to past performance, offering valuable insights to potential investors.
Transitioning to the calls side, the call contract at a $230.00 strike observes a bid of $6.75. Opting to purchase AAPL stock at the prevailing price level and subsequently executing a covered call by selling-to-open the $230.00 strike involves committing to sell the stock at $230.00. This strategy could yield a 5.38% total return if the shares get called away at the November 22nd expiration, excluding dividends. A watchful eye on historical trading patterns and fundamental business analyses remains crucial, especially with the trailing twelve-month trading history chart underscoring the $230.00 strike in red.
Considering that the $230.00 strike sits around a 2% premium compared to the current stock price, the likelihood persists that the covered call contract could expire valueless. Current statistical data hints at a 54% chance of such an eventuality. Stock Options Channel will continually track these probabilities, illustrating the data fluctuations and trading history of the option contract through comprehensive visuals. Should the covered call contract reach a non-fulfillment status, the premium would confer a 3.00% supplementary return to the investor or 21.91% annualized, known as the YieldBoost.
The implied volatility stands at 35% for the put contract and 26% for the call contract examples. Comparatively, the actual trailing twelve-month volatility measures 22%, considering the last 251 trading days’ closing values alongside today’s price of $224.66. For a more extensive array of put and call options insights, a visit to StockOptionsChannel.com is recommended.
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