I am recommending we roll our Pfizer (PFE) put out two weeks and to a higher strike to generate more cash and reduce our net debit on the position.
If you do not currently have a position in this core stock, you can enter one now by selling the second leg. Just be aware that we will be tracking and managing this as an ongoing position.
Current Stock Price: $55.04
Net Debit: $5.88
- Buy to close the PFE Apr Week Two (4/8) 52.50 Put for around $0.02
- Sell to open the PFE Apr Week Four (4/22) 54 Put for around $0.89
- Set initial credit limit at $0.87, but adjust as needed to roll today
New Net Debit: $5.01
Expiration: After the close on Friday, April 22
Potential Rate of Return: I am targeting breakeven for this position