Apple Options Strategy Cuts Cost of Bullish Bet but Adds Assignment Risk

Apple's valuation near 36 times projected fiscal 2027 earnings and elevated option premiums have prompted a CNBC analysis of a strategy that buys a February $360 call while selling a December $310 put and a December $375 call, using short-dated premiums to offset the long-dated call's cost. The strategy profits ideally if Apple trades between $310 and $375 at December expiration, letting both sold options expire worthless. But selling the put obligates the investor to buy shares at $310 even if the market price is lower, and could trigger margin calls. A rally above $375 exposes the sold call to losses or assignment. Apple's market cap recently topped $5 trillion for the first time, approaching Nvidia's global lead. The company said preorders for its first foldable phone, iPhone Duo, opened Friday with "extraordinary" demand, with some delivery estimates pushed to late January.