Pfizer (PFE) and Walgreens Boots Alliance (WBA) are trading near our calls’ strikes.
If PFE closes above $51, our shares will be called away and we will have a net debit on the position. If, however, the stock closes below $51, our call will expire worthless. In this case, we will sell the shares before the company reports earnings on Thursday. In either case, we will re-enter the position by selling a put after the announcement.
If WBA closes above our $38 strike, our shares will be called away and we will sell a put next week to reduce our net debit on the position. If the stock closes below that level, our call will expire worthless, and I will recommend a new one soon to lower our cost basis.
PFE Jul Week Four (7/22) 51 Call
Current Stock Price: $51.46
Cost Basis: $53.96
Action: Watch call expire
Net Debit (if called out): $2.96
WBA Jul Week Four (7/22) 38 Call
Current Stock Price: $38.78
Cost Basis: $45.36
Action: Watch call expire
Net Debit (if called out): $7.36