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If you own 100 shares of Apple at $262.00, you’ve invested $26,200.
With next-year EPS estimated at $7.98, your Owner Earnings equal
$798 — an Earnings Yield of 3.05% on capital.
However, that’s an accounting claim — you don’t actually receive those dollars.
If Apple were a private business, you’d simply be entitled to about
$798 on $26,200 each year, retained within the company rather than paid out.
By contrast, using covered calls or cash-secured puts at the
$260 strike (expiring Sep 18 2026) produces real, contractual income:
the cash-secured put pays $2,130, and the covered call pays $3,200 upfront.
These transform a modest paper earnings yield into an immediate, realized yield —
three to four times higher — while maintaining disciplined collateralized risk.
| Strategy | Upfront / Owner Cash | Earnings / Extraction Yield | Simple APR |
|---|---|---|---|
| Buy & Hold (Owner Earnings @ EPS 7.98) | — (retained) | 3.05% | 3.05% |
| Cash-Secured Put @ $260.00 (exp Sep 18, 2026) | $2,130 | 8.19% (term) | 8.94% |
| Covered Call @ $260.00 (exp Sep 18, 2026) | $3,200 | 12.31% (term) | 13.43% |
Deep ITM LEAP calls embed significant time value. Far from expiry, that time value usually deters early assignment. The $3,200 received is real, bankable cash you can redeploy as float while your $26,000 is the maximum locked exposure. If price declines (e.g., to $175), the premium stays yours; if price rallies, you’ve pre-committed the exit via strike.
| Monthly Rate | Future Value @ 11 mo | Float Gain |
|---|---|---|
| 1.00% | $3,570.14 | $370.14 |
| 1.50% | $3,769.44 | $569.44 |
| 2.00% | $3,978.80 | $778.80 |
| 3.00% | $4,429.55 | $1,229.55 |
| Initial Invested Capital | $26,000.00 |
| Premium Received (Float) | $3,200.00 |
| Locked Capital (Strike × Shares) | $26,000.00 |
| Dividend / Year (100 shares) | $101.00 |
| Yield Before (Div Only) | 0.39% |
| Yield After (Div Only) | 0.39% |
| Expiry | Sep 18, 2026 (11 months) |
| Strategy | Cash Received/Retained | Capital (at risk/reserved) | Term Yield | Simple APR |
|---|---|---|---|---|
| Owner Earnings Lens @ $262.00 |
$798.00 Retained within company — not paid to you |
$26,200.00 | 3.05% | — |
| Cash-Secured Put @ $260.00 (exp Sep 18, 2026) |
$2,130.00 Immediate income — real cash in hand |
$26,000.00 | 8.19% | 8.94% |
| Covered Call @ $260.00 (exp Sep 18, 2026) |
$3,200.00 Immediate income — real cash in hand |
$26,000.00 | 12.31% | 13.43% |
Disclaimer: Educational illustration only; not investment advice. Options involve risk. Dividends may change. Manage early-assignment risk near ex-div dates. Use with valuation discipline and risk controls.