The PNC Financial Services Group Inc. (PNC)
PNC publishes earnings on Thursday before the opening bell.
I shall use the MAY series of options, which trades for the last time 37 days hence, on May 19.
Implied volatility stands at 27%, which is 1.8 times the VIX, a measure of the volatility of the S&P 500 index.
PNC’s IV stands in the 43rd percentile of its annual range and the 99th percentile of its most recent broad movement.
The price used for analysis was $116.96.
|PNC – iron fly||Strike||Odds||Delta|
The premium is 90% of the width of the position’s wings.
The risk/reward ratio is 1.2:1.
Decision for My Account
I am passing on this trade. It’s hard to set up a reasonable trade structure because the strikes are $5 apart on a low-priced stock compared to many.
By Tim Bovee, Portland, Oregon, April 12, 2017