I am recommending we close our Pfizer (PFE) put now to avoid being assigned shares. We are booking a loss on the position rather than carrying it into the new year.
I remain bullish on the company long term, especially following the Food and Drug Administration granting Fast Track designation to the mRNA-based combination vaccine candidate against COVID-19 and influenza the company is developing with BioNTech (BNTX). While the stock popped on the news, it has since given back those gains.
Rather than continuing to tie up capital on a position we have struggled to get back to breakeven, let’s book the loss now.
Current Stock Price: $51.33
Net Debit: $2.53
Action: Buy to close the PFE Dec Week Four (12/23) 53 Put for around $1.66, but adjust as needed to close today
Loss: $4.19, or $419 per contract