Core Viewpoint - Apple stock is experiencing heightened implied volatility ahead of its earnings report, with a potential price movement of 3.9% in either direction, indicating significant market interest and uncertainty [1]. Summary by Sections Earnings and Market Activity - Apple is set to report earnings on Thursday, with the options market reflecting a 3.9% expected move [1]. - The implied volatility for Apple's options is around 47%, significantly higher than its usual 25% [1]. Cash-Secured Put Strategy - A cash-secured put involves selling a put option while setting aside cash to buy the stock, aiming for the option to expire worthless or to acquire the stock at a lower price [2]. - Selling the Oct. 31 put option with a strike price of 260 could generate approximately $190 in premium per contract, with a 76% chance of expiring worthless [3][4]. Trade Mechanics and Returns - If the stock remains above 260 at expiry, the put option will expire worthless, yielding a 0.7% return on capital at risk, equating to an annualized return of 67% [5]. - The break-even price for this trade is calculated at 258.10, which is 3.9% below the current price of around 268.50 [4]. Investment Outlook - Cash-secured puts are viewed as an effective method to generate returns on stocks that investors are willing to own, allowing for potential acquisition at a discount if the stock price falls [6]. - Apple stock holds a Composite Rating of 91 out of 99, with an Earnings Per Share Rating of 84 and a Relative Strength Rating of 80, ranking second in its group according to Investor's Business Daily [7].