Investors in PNC Financial Services Group (PNC) can now access new options contracts expiring in June 2027, providing potential higher premiums for put and call sellers. The $220.00 strike price put contract has a current bid of $20.00, effectively lowering the cost basis of shares to $200.00 if exercised. With the current trading price at $226.90, this represents approximately a 3% discount. The odds of this put contract expiring worthless are estimated at 61%, potentially yielding a 9.09% return on cash commitment.
On the call side, the $230.00 strike price call contract is currently bid at $23.50. If shares are purchased at $226.90 and the call is sold, the total return could reach 11.72% if the stock is called away at expiration. This call option has a 48% chance of expiring worthless, allowing the investor to retain both shares and premium, which would equate to a 10.36% additional return.
The implied volatility for the put is 27%, while the call stands at 29%. Actual trailing twelve-month volatility, based on the last 250 trading days, is calculated at 22%.
