Exploring Novel Investment Opportunities
Investors keen on Apple Inc (Symbol: AAPL) had the chance to delve into new options today, with the November 22nd expiration. Stock Options Channel unveiled its YieldBoost formula, scanning the AAPL options chain for the latest November 22nd contracts. In this exploration, a put and call contract emerged as particularly enticing.
The put contract at the $200.00 strike price sparked interest with a current bid of $1.74. Selling-to-open this put contract involves committing to buy the stock at $200.00, while also collecting the premium. This move sets the cost basis of the shares at $198.26, a compelling alternative for investors eyeing AAPL shares at $224.66.
At an approximate 11% markdown to the current trading price of the stock, the $200.00 strike resides out-of-the-money, hinting at a potential worthless expiry for the put contract. The current analytical data project an 85% likelihood of this outcome. Stock Options Channel will diligently monitor these odds and present a chart on our platform. In the case of a worthless expiry, the premium can deliver a 0.87% return on the cash commitment, equal to a 6.35% annualized return – or as we term it, the YieldBoost.
Evaluating Call Contract Prospects
Exploring the calls side of the option chain, the call contract at the $230.00 strike price offered a bid of $6.75. Purchasing AAPL shares at the prevailing price of $224.66/share and selling-to-open this call contract as a “covered call” involves committing to sell the stock at $230.00. Factoring in the premium, this move could yield a 5.38% total return, excluding dividends, if the stock gets called away by the November 22nd expiration. Yet, substantial upside potential may remain untapped should AAPL shares witness a substantial rise. Hence, analyzing AAPL’s twelve-month trading history becomes crucial. A chart illustrating this, with the $230.00 strike highlighted in red, is available for reference.
With the $230.00 strike manifesting as a 2% premium to the current stock price and being out-of-the-money, the prospect of an expiry without value looms. The current odds point to a 54% possibility of this scenario. Stock Options Channel will diligently monitor and chart these odds on our platform. In the event of a worthless expiry, the premium could offer an extra boost of 3.00% return to the investor, equaling a 21.91% annualized return – our esteemed YieldBoost metric.
Implied and Volatility Data Insights
The put contract example showcases an implied volatility of 35%, while the call contract portrays 26% implied volatility. Delving deeper, the actual trailing twelve-month volatility is calculated at 22%. For additional put and call options contract insights, peruse StockOptionsChannel.com for more.
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