Pfizer (PFE) announced better-than-expected revenue and earnings this week, generating $25.7 billion in first-quarter sales and an adjusted profit of $1.62 per share.
Management forecast full-year revenue of $98 billion to $102 billion and earnings of $6.25-$6.45 per share. That means the stock is currently trading for less than 8 times the low end of earnings guidance.
We temporarily exited our position to avoid earnings risk. Now that the report is behind us, I am recommending a put to sell to reduce our net debit on the position.
You can enter today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $48.77
Net Debit: $4.56
Action: Sell to open the PFE May Week Two (5/13) 47.50 Put for around $0.62, but adjust as needed to sell a put today
New Net Debit: $3.94
Expiration: After the close on Friday May, 13