Pfizer (PFE) has moved higher this month on renewed COVID-19 concerns. I am recommending we roll our put out one week to generate more income and reduce our net debit on the position.
You can enter the second leg of 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: $49.98
Net Debit: $3.68
- Buy to close the PFE May Monthly (5/20) 50 Put for around $0.48
- Sell to open the PFE May Week Four (5/27) 50 Put for around $1.02
- Set initial credit limit at $0.54, but adjust as needed to roll today
New Net Debit: $3.14