Investors in PPL Corp (Symbol: PPL) can now access new options set to expire in June 2027, providing an avenue for both put and call sellers to potentially achieve higher premiums. The put contract at a $33.00 strike price has a current bid of 30 cents, allowing investors to lower their cost basis to $32.70 if executed, presenting an 8% discount compared to PPL’s current trading price of $35.94. Current data suggests a 70% chance that the put could expire worthless, offering a potential return of 0.91% on the cash commitment.
On the calls side, a $37.00 strike price call contract is available with a bid of $1.10. If executed, the total return could reach 6.01%, while there’s a 51% chance it may also expire worthless, allowing the seller to keep both the shares and the premium collected. Implied volatilities are at 26% for puts and 23% for calls, compared to actual trailing volatility of 18%.
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