PCG Options Analysis: Put Contract Yield Boost at 10.47%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: NASDAQ.COM
- Put Contract Yield: The current bid for PCG's $15.00 put contract is 37 cents, and if an investor sells to open this contract, they commit to buying shares at $15.00, effectively lowering their cost basis to $14.63, making it an attractive alternative to the current $15.43 share price.
- Expiration Risk Assessment: The probability of the put contract expiring worthless is 63%, and if it does, the premium would yield a 2.47% return on cash commitment, annualized at 10.47%, highlighting the potential appeal of this strategy.
- Call Contract Returns: The $16.00 call contract for PCG has a current bid of 42 cents, and if an investor buys shares at $15.43 and sells this contract, they could achieve a total return of 6.42% if the stock is called away at expiration, indicating significant profit potential.
- Market Volatility Analysis: The implied volatility for the put contract is 31%, while for the call it is 30%, with an actual trailing twelve-month volatility of 28%, suggesting heightened market expectations for future fluctuations in PCG's stock price, necessitating careful risk assessment by investors.
Analyst Views on PCG
Wall Street analysts forecast PCG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PCG is 21.36 USD with a low forecast of 18.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
11 Analyst Rating
9 Buy
2 Hold
0 Sell
Strong Buy
Current: 15.250
Low
18.00
Averages
21.36
High
25.00
Current: 15.250
Low
18.00
Averages
21.36
High
25.00
About PCG
PG&E Corporation is a holding company. The Company's primary operating subsidiary is Pacific Gas and Electric Company (the Utility), a public utility operating in Northern and Central California. The Utility is engaged in the sale and delivery of electricity and natural gas to customers. The Utility generates electricity and provides electric transmission and distribution services throughout its service area in northern and central California to residential, commercial, industrial, and agricultural customers. The Utility provides electricity, transmission, and distribution services in its service area. The Utility owns approximately 18,000 circuit miles of interconnected transmission lines operating at voltages ranging from 60 kilovolts (kV) to 500 kV. The Utility also operates 33 electric transmission substations with a capacity of approximately 67,000 megavolt amperes (MVA). Customers can also obtain electricity from alternative providers such as municipalities (CCAs).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
