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Investors in the iShares Trust – Preferred & Income Securities ETF (PFF) now have new options available for the July 2026 expiration, with 228 days until expiration. Notably, a $29.00 put contract has a bid of $0.40, offering a potential cost basis of $28.60 for investors willing to purchase shares at a discount of approximately 6% from the current trading price of $30.71. Analysis suggests a 72% chance the put will expire worthless, yielding a 1.38% return on cash commitment or 2.21% annualized.
On the call side, a $31.00 contract is currently bidding at $0.20. If an investor sells this covered call while holding shares at $30.71, they could see a total return of 1.60% if the stock is called away by expiration. This strike price represents a 1% premium to the current trading price, with a 59% likelihood of the call expiring worthless, potentially providing a 0.65% additional return or 1.04% annualized.
The implied volatilities for the put and call contracts are 11% and 10%, respectively, while actual trailing volatility is calculated at 9% based on the last 249 trading days.
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