On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 54%. Below is a chart showing PB's trailing twelve month trading history, with the $75.00 strike highlighted in red:Ĭonsidering the fact that the $75.00 strike represents an approximate 4% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. Of course, a lot of upside could potentially be left on the table if PB shares really soar, which is why looking at the trailing twelve month trading history for Prosperity Bancshares Inc., as well as studying the business fundamentals becomes important. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 7.86% if the stock gets called away at the March 2023 expiration (before broker commissions). If an investor was to purchase shares of PB stock at the current price level of $72.22/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $75.00. Turning to the calls side of the option chain, the call contract at the $75.00 strike price has a current bid of $2.90. Dividend Stocks »īelow is a chart showing the trailing twelve month trading history for Prosperity Bancshares Inc., and highlighting in green where the $70.00 strike is located relative to that history:
Should the contract expire worthless, the premium would represent a 5.29% return on the cash commitment, or 8.24% annualized - at Stock Options Channel we call this the YieldBoost. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 62%. To an investor already interested in purchasing shares of PB, that could represent an attractive alternative to paying $72.22/share today.īecause the $70.00 strike represents an approximate 3% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless.
If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $70.00, but will also collect the premium, putting the cost basis of the shares at $66.30 (before broker commissions). The put contract at the $70.00 strike price has a current bid of $3.70. At Stock Options Channel, our YieldBoost formula has looked up and down the PB options chain for the new March 2023 contracts and identified one put and one call contract of particular interest. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 234 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. (PB) saw new options become available this week, for the March 2023 expiration. Stock Options Channel Staff - Tuesday, July 26, 10:35 AM Gain access to weekly reports with featured information for stock options enthusiasts.įirst Week of March 2023 Options Trading For Prosperity Bancshares (PB)
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