Investors in PNC Financial Services Group (PNC) can now engage with new options expiring on July 17, 2023. The available put option at the $200 strike has a bid of $11.90, allowing sellers to potentially achieve a cost basis of $188.10 if they sell to open. This is about a 1% discount to the current trading price of $202.24, with a 57% chance the contract could expire worthless, yielding a 5.95% return on cash commitment, or 19.92% annualized.
On the call side, the $210 strike option has a current bid of $9.00. Selling this as a covered call could offer an 8.29% return if exercised, with a 55% chance of expiring worthless, which would still allow investors to retain both their shares and the premium. The implied volatility for the put is 34% and for the call is 33%, while the actual trailing volatility over the past year is recorded at 26%.
