I am again recommending we roll our Pfizer (PFE) put to a higher strike price to generate more income and increase our potential rate of return. Note that we are keeping the expiration date the same.
With the White House expected to recommend booster doses of COVID-19 vaccines to most Americans and FDA permanent authorization on the way, I think shares still have room to run.
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: $51.41
Cash in Hand: $1.13
- Buy to close the PFE Aug Monthly (8/20) 49 Put for around $0.09
- Sell to open the PFE Aug Monthly (8/20) 51 Put for around $0.61
- Set your initial credit limit at $0.52, but adjust as needed to roll today
New Cash in Hand: $1.65
Expiration: After the close on Friday, Aug. 20
Potential Rate of Return: 3.2% in 11 days, or 107% annualized, if this option expires worthless