Exploring May 24th Options for Apple (AAPL)
As of today, investors in Apple Inc (Symbol: AAPL) have the chance to delve into new options available for the May 24th expiration date. With the introduction of these options, there arises an opportunity to analyze and potentially seize upon these financial instruments.
Potential of Put Contracts
One intriguing aspect lies in the put contract at the $150.00 strike price, currently sporting a bid of 35 cents. By selling-to-open this put contract, investors agree to potentially acquire the stock at $150.00, while also receiving the premium. This move effectively reduces the cost basis of the shares to $149.65, making it potentially advantageous for those eyeing an AAPL stock purchase.
Insights from Historical Context
The $150.00 strike point presents a roughly 12% discount compared to the current stock price, thereby categorizing it as out-of-the-money. Data analysis indicates an 87% probability that the put contract could expire without value. This information, backed by statistical indicators, suggests the odds of the put contract expiring worthless, offering investors a perspective on this financial maneuver.
Embracing Call Options
On a different spectrum, the call contract at the $175.00 strike garners a bid of $2.78. Through a “covered call” strategy, investors committing to sell the stock at $175.00 can attain a total return of 3.95%. Analyzing the historical trading patterns of Apple Inc over the past twelve months unveils insights crucial to grasping the potential ramifications of engaging in this call contract.
Charting Possibilities
With the covered call, offering an approximate 2% premium to the current stock price, the scenario could result in the contract expiring without value. Statistical data signals a 57% chance of this outcome. Stock Options Channel will monitor and display alterations in these odds over time and provide a comprehensive breakdown of these results to aid investors in their decision-making process.
Analyzing Volatility and Market Trends
While the put contract showcases an implied volatility of 33%, the call contract mirrors a lower implied volatility of 24%. Close scrutiny of the actual trailing twelve-month volatility, standing at 19%, in conjunction with the myriad options contract propositions, ushers in a holistic view of the market dynamics at play.
For more depth and comprehensive insights into various put and call options, investors can explore further at StockOptionsChannel.com.
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