I am recommending we roll our Pfizer (PFE) put to a higher strike price to generate more income. Note that we are keeping the expiration date the same.
The federal government reportedly plans to recommend booster doses of COVID-19 vaccines to most Americans. I do not think this has been fully priced into PFE shares.
If you were not in the previous PFE trade and plan to enter the second leg of today’s roll, please be aware that we will be tracking and managing it as an ongoing position.
Current Stock Price: $49.62
Cash in Hand: $0.84
- Buy to close the PFE Aug Monthly (8/20) 47 Put for around $0.04
- Sell to open the PFE Aug Monthly (8/20) 49 Put for around $0.33
- Set your initial credit limit at $0.29, but adjust as needed to roll today
New Cash in Hand: $1.13
Potential Rate of Return: 2.3% in 11 days, or 77% annualized, if this option expires worthless