As I mentioned in this week’s Live Trading Session, I was hoping to put on a post-earnings trade in Pfizer (PFE).
The stock is up more than 2% today following the release of the company’s report, with revenue and earnings exceeding analyst expectations. Management said its COVID-19 vaccine helped to almost double overall sales in the second quarter and prompted them to boost their full-year revenue forecast.
I am recommending members sell a put on the stock today.
Current Stock Price: $43.10
Action: Sell to open the PFE Aug Week One (8/6) 42.50 Put
Current Option Price: $0.39-$0.40
Recommended Limit: Set your initial limit order at $0.39. You can go as low as $0.34, but please don’t start there and always use limit orders.
Expiration: After the close on Friday, Aug. 6
Potential Rate of Return: 0.9% in 10 days, or 33% on an annualized basis, if this option expires worthless