Strategic Options Positions for SCHW: March 27 Expiration Symbol Trading Opportunities

Traders and investors focused on The Charles Schwab Corporation (SCHW) now have fresh options strategies to evaluate for the upcoming March 27 expiration date. Our analysis of the options chain has highlighted two particularly compelling setups: a put-selling opportunity and a covered-call approach. Each offers distinct risk-reward profiles worth examining if you’re bullish on the symbol or seeking income-generating strategies.

Put-Selling Strategy: Capturing Premium Below Current Market Levels

For investors interested in accumulating SCHW shares at a discount, the put contract at the $95.00 strike deserves attention. Currently bidding at 17 cents, this position allows you to commit to purchasing shares at $95.00 while immediately collecting the premium—effectively lowering your entry cost to $94.83 per share (before commissions). At the current market price of $101.78, this represents a roughly 7% markdown from today’s level.

The mathematical advantage here is compelling. Since the $95.00 strike sits below current market pricing, there’s a meaningful probability the contract expires worthless, meaning you keep the premium without taking on the shares. Statistical analysis suggests approximately 78% odds of this outcome occurring by March 27 expiration. Should that scenario play out, your return would be 0.18% on the cash set aside—or 1.31% when annualized.

This strategy works best for those with available capital and genuine interest in owning SCHW stock, since your commitment requires holding sufficient funds to purchase the shares should the put be exercised. The premium collected serves as a hedge against your entry price while you evaluate whether market conditions develop favorably.

Covered-Call Strategy: Locking in Defined Returns on Existing or New Positions

On the upside, the call contract at the $112.00 strike provides a different income opportunity. With a current bid at 33 cents, investors purchasing SCHW at $101.78 and simultaneously selling this call (known as a covered-call approach) are capping their upside at $112.00—but collecting premium in exchange.

If SCHW shares get called away at the March 27 expiration, your total return comes to 10.37%, excluding dividends. That premium contribution of 33 cents translates to an additional 2.37% annualized if the contract expires worthless and you retain both your shares and the income. The symbol’s probability of not being called away is approximately 74%, based on current options analytics.

The $112.00 strike represents roughly 10% premium to today’s $101.78 price, positioning this as an out-of-the-money call. Covered calls appeal to investors who want to generate ongoing income from their holdings while accepting that significant upside appreciation might be foregone if SCHW rallies sharply beyond the strike level.

Comparing Implied Volatility and Historical Price Action

The put contract carries 33% implied volatility, while the call shows 30% implied volatility. Meanwhile, SCHW’s actual trailing twelve-month volatility calculates to 24% based on 251 trading days of price history. This divergence between implied and realized volatility often signals opportunity—elevated implied volatility typically makes premium-selling strategies more attractive to income-focused traders.

Deciding Between Strategies: Key Considerations

Your choice between these March 27 expiration positions depends on market outlook and portfolio objectives. Put-selling suits those confident in SCHW fundamentals and looking for discounted entry prices. Covered calls appeal to existing shareholders or those willing to accept capped upside in exchange for immediate income generation and downside cushion from the premium collected.

Both strategies involve monitoring through expiration—odds shift as time passes and price action unfolds. Neither should be considered in isolation from Charles Schwab’s business performance, competitive positioning, and your broader portfolio construction. For additional options ideas across multiple symbols and expirations, specialized options analysis resources continue tracking probability-weighted strategies and YieldBoost metrics daily.