I am recommending we roll our Bank of America (BAC) and Pfizer (PFE) calls out one week to generate more income and reduce our cost basis on the positions.
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.
Note that these trades are only for members who are already in the positions.
BAC Jul Week One (7/1) 33.50 Call
Current Stock Price: $32.06
Cost Basis: $42.26
- Buy to close the BAC Jul Week One (7/1) 33.50 Call for around $0.07
- Sell to open the BAC Jul Week Two (7/8) 33 Call for around $0.33
- Set your initial credit limit at $0.26, but adjust as needed to roll today
New Cost Basis: $42
Expiration: After the close on Friday, July 8
Potential Rate of Return: I am targeting breakeven for this position
PFE Jun Week One (7/1) 50 Call
Current Stock Price: $51.12
Cost Basis: $59.45
- 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 your initial credit limit at $0.30, but adjust as needed to roll today
New Cost Basis: $59.15