New Options for Apollo Global Management Inc Offer Potential Gains

A recent report highlights new options for Apollo Global Management Inc, providing opportunities for put and call contracts that may yield attractive returns. With a strong analytical backing, investors could benefit from significant premiums, suggesting an optimistic outlook for the stock.

Date: 11-09-2024

AI Rating: 7

The report presents various options strategies for Apollo Global Management Inc (Ticker: APO), showing potential investment opportunities through available put and call contracts.

The put contract at the $100.00 strike price allows an investor to collect a premium of $7.80, which effectively decreases the cost basis to $92.20. This presents an attractive entry point compared to the current share price of $104.98. With a 66% chance of the put expiring worthless, the investor is positioned to enjoy a 7.80% return on cash commitment, or 7.63% annualized.

On the call side, the $115.00 strike price presents opportunities as well. Selling this covered call at a current bid of $9.10 yields an anticipated return of 18.21% if the stock is called away. It indicates the stock has room for growth, although there’s a 50% risk of the call expiring worthless. Should it do so, investors will keep both their shares and the premium, leading to an 8.67% additional return, or 8.48% annualized.

Furthermore, implied volatility for the put option is at 34% while it stands at 31% for the call option, indicating a potentially favorable trading environment. The actual trailing twelve-month volatility is calculated at 30%, establishing a comparison point for future performance. The data presented in the report regarding options contracts may significantly impact stock prices depending on market strategies and investor sentiment.

The options strategies discussed present a mix of moderate risk and abundant premiums, hinting at a robust investment narrative for Apollo Global Management Inc.

Stocks: APO