We have positions in General Motors (GM) and Pfizer (PFE) expiring today.
Our GM call is on track to expire worthless. The company is scheduled to report earnings on April 26. We will exit the position before then and re-enter following the announcement.
PFE sold off this week despite the fact that the World Health Organization endorsed the use of the company’s oral Covid-19 antiviral treatment in high-risk patients after data confirmed it drastically cut hospitalization risk. The stock seems to be getting hit by news of Johnson & Johnson (JNJ) lowering its 2022 Covid-19 vaccine sales forecast, citing a global surplus.
PFE is radically undervalued. Let’s accept shares and we will sell a call against them soon to generate more income.
GM Apr Week Four (4/22) 42.50 Call
Current Stock Price: $40.21
Cost Basis: $51.40
Action: Watch call expire worthless
Potential Rate of Return: I am targeting breakeven for this position
PFE Apr Week Four (4/22) 54 Put
Current Stock Price: $48.07
Net Debit: $5.01
Action: Accept shares
Cost Basis: $59.01
Potential Rate of Return: I am targeting breakeven for this position