AAPL Covered Calls

[bellenuit]

For the last year or so I have been selling AAPL Covered Calls with a strike price about USD 10 above what the underlying is currently trading at and with an exercise date about 12 days ahead (I usually sell on a Monday for an exercise date of Friday of the following week). These are usually valued at about USD 0.50 or so.

Tonight these are trading at about USD 1.70. For example, AAPL is about USD 287.22 and Jan 10 297.5 Calls are trading at 1.60 or so.

Is there something special about the Year End being in between to cause those options to sell at three times what I normally would expect to get?

 

[peter2]

I had a look around but found nothing specific. Is it just a spike in IV?
AAPL is one of the strongest stocks in the US market atm.

 

[fergee]

Could be result of the VIX spike last night(+10%) causing the volatility and hence price of the option to increase. Just my

 

[fergee]

I had a look around but found nothing specific. Is it just a spike in IV?
AAPL is one of the strongest stocks in the US market atm.

Just read this after I posted mate. Looks like we came to the same conclusion.

 

[bellenuit]

thanks I'll check that out. I'll see how it goes tonight.