PENN Options Analysis: $14 Put Contract Offers 6.07% Yield Boost
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2025
0mins
Source: NASDAQ.COM
- Put Contract Yield: The current bid for the $14 put contract is 85 cents, and if an investor sells-to-open this contract, they commit to buying shares at $14, effectively lowering their cost basis to $13.15, which represents a 4% discount compared to the current stock price of $14.63, making it an attractive option for potential PENN investors.
- Expiration Risk Assessment: Current analytics suggest a 63% chance that the put contract will expire worthless, and if it does, the premium would yield a 6.07% return on cash commitment, equating to an annualized return of 36.93%, highlighting the potential appeal of this investment strategy.
- Call Contract Returns: The $15 call contract has a current bid of 96 cents, and if an investor buys PENN shares at $14.63 and sells this call, they could achieve a total return of 9.09% if the stock is called away at the February 2026 expiration, providing an additional profit opportunity.
- Market Volatility Analysis: Both the put and call contracts exhibit an implied volatility of approximately 51%, while the actual trailing twelve-month volatility stands at 50%, indicating market expectations for price fluctuations in PENN stock, which investors should monitor to optimize their investment decisions.
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Analyst Views on PENN
Wall Street analysts forecast PENN stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for PENN is 19.38 USD with a low forecast of 14.15 USD and a high forecast of 26.00 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.
15 Analyst Rating
9 Buy
5 Hold
1 Sell
Moderate Buy
Current: 13.150
Low
14.15
Averages
19.38
High
26.00
Current: 13.150
Low
14.15
Averages
19.38
High
26.00
About PENN
PENN Entertainment, Inc. is a provider of integrated entertainment, sports content, and casino gaming experiences. The Company operates in 28 jurisdictions throughout North America, with a broadly diversified portfolio of casinos, racetracks, and online sports betting and iCasino offerings under brands including Hollywood Casino, L’Auberge, ESPN BET, and theScore BET Sportsbook and Casino. Its segments include Northeast, South, West, Midwest, and Interactive. The Northeast segment includes Ameristar East Chicago, Hollywood Casino at Greektown, and Hollywood Casino Bangor. The South segment includes 1st Jackpot Casino, Ameristar Vicksburg, Boomtown New Orleans, and L’Auberge Baton Rouge. The West segment includes Ameristar Black Hawk, M Resort Spa Casino, and Zia Park Casino. The Midwest segment includes Ameristar Council Bluffs, Hollywood Casino Aurora, and River City Casino. Its Interactive segment includes online sports betting, online casino/iCasino, and social gaming operations.
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.
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