I am recommending we roll our Pfizer (PFE) call out one week to generate more income and reduce our cost basis on the position.
PFE has rallied this week and is currently trading above our call’s strike. Today, the Food and Drug Administration said it will recommend that an omicron-fighting component is included in updated COVID-19 boosters this fall. That’s good news for Pfizer, which earlier this week released positive data on two omicron-adapted vaccine candidates.
Current Stock Price: $51.12
Cost Basis: $54.15
- Buy to close the PFE Jun Week One (7/1) 50 Call for around $1.35
- Sell to open the PFE Jul Week Two (7/8) 50 Call for around $1.65
- Set initial credit limit at $0.30, but adjust as needed to roll today
New Cost Basis: $53.85