MNV
Market News Video
MNV MNV The 10 Most Popular Large-Caps in ETFs
MNV
MNV
MNV
MNV
MNV
MNV
MNV
Free Dividend Report - Top Ranked Stocks

Featured MNV Articles:

Notable ETF Inflow Detected - PFF, ALLY, USB, DUK
Thursday, April 1, 10:48 AM ET, by Market News Video Staff

Symbols mentioned in this story: PFF, ALLY, USB, DUK Exchange traded funds (ETFs) trade just ...

PFF, WFC, ALLY, C: ETF Inflow Alert
Friday, April 9, 10:56 AM ET, by Market News Video Staff

Symbols mentioned in this story: PFF, WFC, ALLY, C Exchange traded funds (ETFs) trade just ...

First Week of June 18th Options Trading For iShares Trust - Preferred & Income Securities ETF (PFF)
Tuesday, April 20, 10:48 AM ET, by Market News Video Staff

Investors in iShares Trust - Preferred & Income Securities ETF (PFF) saw new options begin ...

Noteworthy ETF Outflows: PFF, ALLY, QRTEA, GS
Monday, May 17, 10:56 AM ET, by Market News Video Staff

Symbols mentioned in this story: PFF, ALLY, QRTEA, GS Exchange traded funds (ETFs) trade just ...

ETF Flows Report for 05/28/2021
Friday, May 28, 10:56 AM ET, by Market News Video Staff

.porttr { font-family: Arial; font-size: 12pt; font-weight: bold; height: 24px; } .porttd1 { font-family: Arial; ...

First Week of April 2022 Options Trading For iShares Trust - Preferred & Income Securities ETF (PFF)

By Market News Video Staff, Tuesday, August 24, 10:41 AM ET
Play Video: The Importance of ETFs


If the video does not load after a few moments, Upgrade to the Latest Flash Player.
Email EnvelopeFree Email Alerts By Stock:
Get Dividend Alerts
Get SEC Filing Alerts

Investors in iShares Trust - Preferred & Income Securities ETF (NASDAQ:PFF) saw new options become available this week, for the April 2022 expiration. One of the key inputs that goes into the price an option buyer is willing to pay, is the time value, so with 233 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. At Stock Options Channel, our YieldBoost formula has looked up and down the PFF options chain for the new April 2022 contracts and identified the following put contract of particular interest.

The put contract at the $39.00 strike price has a current bid of $1.15. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $39.00, but will also collect the premium, putting the cost basis of the shares at $37.85 (before broker commissions). To an investor already interested in purchasing shares of PFF, that could represent an attractive alternative to paying $39.27/share today.

Because the $39.00 strike represents an approximate 1% 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. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 38%. 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. Should the contract expire worthless, the premium would represent a 2.95% return on the cash commitment, or 4.62% annualized — at Stock Options Channel we call this the YieldBoost.

Below is a chart showing the trailing twelve month trading history for iShares Trust - Preferred & Income Securities ETF, and highlighting in green where the $39.00 strike is located relative to that history:

The implied volatility in the put contract example above is 19%.

Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 252 trading day closing values as well as today's price of $39.27) to be 7%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.


This Article's Word Cloud:   April   Arial   Because   Below   Channel   Income   Options   Preferred   Securities   Stock   Trust   YieldBoost   also   available   call   chart   contract   contracts   current   expiration   expire   fillColor   greeks   history   iShares   implied   investor   month   odds   options   premium   price   represent   shares   stock   strike   that   they   this   those   time   today   trading   trailing   twelve   volatility   will   with   worthless   would
MNV
MNV
About Us - Advertise - Contact Us - Embedding Videos - Licensing Videos - Partners - mRSS / RSS Feed - Terms of Use - Privacy Policy
MNV
Home  |  Analyst News  Dividend Report  ETFs  Insider Report  Large Caps  Market Movers  Week Ahead Report  Weekly Market Wrap
MNV
MNV MNV Stock Message Boards Stock Market Definitions
MNV

First Week of April 2022 Options Trading For iShares Trust - Preferred & Income Securities ETF (PFF) | Market News Video | Copyright © 2008 - 2022, All Rights Reserved

Any ideas and opinions presented in all Market News Video clips are for informational and educational purposes only, and do not reflect the opinions of BNK Invest, Inc. or any of its affiliates, subsidiaries or partners. In no way should any content contained herein be interpreted to represent trading or investment advice. None of the information contained herein constitutes a recommendation that any particular security, portfolio, transaction, or investment strategy is suitable for any specific person. All viewers agree that under no circumstances will BNK Invest, Inc,. its subsidiaries, partners, officers, employees, affiliates, or agents be held liable for any loss or damage caused by your reliance on information obtained. Read Full Disclaimer.