We accepted shares in a number of Options Income Blueprint positions last week. As I said, the math of selling calls simply makes more sense in the current market environment than continuing to roll the puts. Not only will we be able to collect cash, but we can capture potential appreciation when the market recovers.
The goal will be to generate a 0.5% cash return. However, we may accept a lower cash rate of return if I believe there is significant potential for short-term appreciation.
I am recommending a call to sell on Pfizer (PFE).
The stock is mind-bogglingly undervalued trading with a price-to-earnings multiple that is roughly half that of the S&P 500.
Pfizer is expected to grow revenue 28% this year to more than $104 billion, a record for the company. It is also expecting to rake in record profits thanks to its COVID-19 vaccine and treatments.
Note that this trade is only for members who already own shares uncovered from a previous position.
Current Stock Price: $48.90
Cost Basis: $59.92
Action: Sell to open the PFE Jun Week One (7/1) 50 Call
Current Option Price: $0.45-$0.49
Recommended Limit: Set your initial limit order at $0.47, but adjust as needed to sell a call today
New Cost Basis: $59.45
Expiration: After the close on Friday, July 1
Potential Rate of Return: I am targeting breakeven for this position