Potential Opportunities in Stock Options for Apple Inc. (AAPL)
For those keeping a close eye on their stock options watchlist, Apple Inc (Symbol: AAPL) continues to stand out. With January 2026 expiration approaching, one particularly intriguing put contract and one compelling call contract are worthy of attention for potential gains.
The Value of Selling Put Contracts
As our YieldBoost algorithm has identified, the $105 strike put contract offers a bid at $1.60. This amounts to a 1.5% return against the $105 commitment, or an annualized rate of 0.8%. Selling a put doesn’t provide access to AAPL’s potential upside like owning shares would; it only leads to ownership if the contract is exercised.
Interestingly, the annualized 0.8% return exceeds the 0.5% annualized dividend paid by Apple Inc. If investors were to consider buying the stock at the current market price for the dividend, they would face greater downside risk as the stock would need to decrease by 44.15% to reach the $105 strike price.
Considering Historical Dividend Trends
When discussing dividends, it’s important to note that dividend amounts can be unpredictable, fluctuating with a company’s profitability. Examining the dividend history chart for AAPL can provide insight into the likelihood of the current dividend continuing, and whether a 0.5% annualized dividend yield is reasonable to expect.
Opportunities with Call Contracts
For shareholders looking to increase their income beyond the stock’s 0.5% annualized dividend yield, selling a covered call at the $220 strike and collecting the $16.65 premium offers an additional 4.6% rate of return against the current stock price. This totals to a 5.1% annualized rate in the scenario where the stock is not called away.
Assessing Option Contracts and Historical Volatility
The trailing twelve month trading history for Apple Inc, in combination with the stock’s historical volatility, can assist in evaluating whether the highlighted January 2026 put or call options offer a potential return that justifies the risks.
Current Options Trading Volume
As of mid-afternoon trading on Monday, the put volume among S&P 500 components amounted to 2.19M contracts, with call volume at 3.92M. This leads to a put:call ratio of 0.56 for the day, signifying high call volume relative to puts. Buyers are expressing a preference for calls in options trading so far.
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