Put and Call Options Analysis
Options traders witnessed the availability of new contracts today for Apple Inc. As investors scurry to tap into these June 14th opportunities, the options chain presents intriguing possibilities.
Intriguing Put Options
Consider the put contract at the $180.00 strike price. With a current bid of $3.15, selling-to-open this put contract means committing to purchase the stock at $180.00. Despite the obligation, an investor could collect the premium, potentially lowering the cost basis to $176.85 per share. A smart move for those eyeing AAPL shares at today’s price of $184.07/share.
These $180.00 puts align approximately 2% below the current trading price of Apple stock, presenting a tempting out-of-the-money (OTM) proposition. The analytics forecast a 66% probability of the put contract expiring worthless, providing traders with a 1.75% return on cash commitment or an annualized 15.21% YieldBoost.
Lucrative Call Options
Turning to the call side, the $185.00 strike price offers a call contract with a bid of $5.35. Buying AAPL shares at $184.07/share and simultaneously selling-to-open the call contract as a “covered call” at $185.00, means committing to selling the stock at the strike price. With a potential total return of 3.41%, it’s a strategy worth exploring, especially if the shares get called away at expiration.
The $185.00 call strikes 1% above the current stock price, creating an out-of-the-money (OTM) scenario. The analytics depict a 49% chance of the covered call expiring worthless, handing investors back both their shares and premium collected. Should this happen, traders can enjoy a 2.91% additional return or a 25.26% annualized YieldBoost.
Market Volatility Insights
Both the put and call contract examples showcase an implied volatility of approximately 22%. Conversely, the trailing twelve month volatility, considering the last 251 trading days and today’s price of $184.07, stands at 20%. This parity unveils intriguing dynamics for investors to ponder over.
For engaging put and call options concepts, StockOptionsChannel.com stands ready for exploration. In a market characterized by ups and downs, these opportunities are vital for strategic investors looking to navigate the turbulent waters of the stock market.