This Bank Stock Looks Poised for a Relief Rally

The equity could benefit from an unwinding of pessimism

Mar 27, 2026 at 11:43 AM

Subscribers to Schaeffer's Weekend Trader options recommendation service received this PNC commentary on Sunday night, along with a detailed options trade recommendation -- including complete entry and exit parameters. Learn more about why Weekend Trader is one of our most popular options trading services.

PNC Financial Services Group Inc (NYSE:PNC) shares are pulling back to a confluence of the 200-day moving average and peak put support at the 200-strike. Maximum pain rolls higher to $230 for April standard expiration, giving us a shot at a relief rally.

Options traders have been much more bearish than usual, per the security's 10-day put/call volume ratio of 2.39 at the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that sits in the 90th percentile of its annual range. An unwinding of this pessimism could create additional tailwinds for PNC.

Options are affordably priced, per the stock's Schaeffer's Volatility Index (SVI) of 35% that stands in the 29th percentile of annual readings. Plus, PNC's Schaeffer's Volatility Scorecard (SVS) comes in at 97 out of 100. In other words, shares have consistently realized higher volatility than its options have priced in over the past 12 months.

Our recommended May call has a leverage ratio of 9.7 and will double on an 11% rise in the underlying equity.

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