We were assigned shares of Pfizer (PFE) last week, so I am recommending a call to sell against those shares today.
Pfizer is one of our core Options Income Blueprint stocks, which means it is a name I want to trade with great frequency.
We are underwater on the position, but I plan to continue to recommend calls to generate income and reduce our cost basis until we can exit at breakeven or with a profit.
If you were not in the previous PFE trade and want to sell a call today, you must first buy 100 shares of the underlying stock for every call you plan to sell to make sure your position is covered. Also, note that I will be tracking and managing based on the ongoing position.
Current Stock Price: $44.76
Cost Basis: $48.63
Action: Sell to open the PFE Sep Monthly (9/17) 45 Call
Current Option Price: $0.38-$0.39
Recommended Limit: Set your initial credit limit at $0.38, but adjust as needed to sell a call today
New Cost Basis: $48.25
Expiration: After the close on Friday, Sept. 17
Potential Rate of Return: I am targeting breakeven for this position