Pfizer (PFE) has run up over the past two weeks and our call is in the money.
In addition to money rotating into pharmaceutical stocks recently, this week, a judge ruled that potential plaintiffs didn’t have standing to bring a class-action lawsuit against the company for allegedly steering patients toward high-priced drugs.
Let’s roll our call out two weeks to avoid having shares called away and to generate a bit more income.
Current Stock Price: $41.54
Cost Basis: $56.87
- Buy to close the PFE Apr Week One (4/6) 40 Call for around $1.56
- Sell to open the PFE Apr Monthly (4/21) 40 Call for around $1.79
- Set your initial credit limit at $0.23, but adjust as needed to roll today
New Cost Basis: $56.64
Expiration: After the close on Friday, April 21
Potential Rate of Return: We are targeting breakeven for the position