Pfizer (PFE) has run up more than 10% since we last rolled our call, moving too fast and too far to make rolling our PFE Oct Week Four (10/28) 43.50 Call up to capture more appreciation feasible. Additionally, the company is expected to report earnings on Nov. 1.
Therefore, we are going to allow our shares to be called away. This will incur a large net debit on the position.
My hope is that we can get back to breakeven by aggressively selling puts on this core stock following the release of the company’s earnings announcement. It would be nice if the upward momentum sustains following the report, but either way, we will have an opportunity to take advantage of still-elevated volatility levels.
Current Stock Price: $47.33
Cost Basis: $53.68
Action: Allow shares to be called away
Net Debit: $10.18
Potential Rate of Return: I am targeting breakeven for this position