Pfizer (PFE) is up more than 8% over the past week, boosted by news that the Food and Drug Administration has granted Fast Track designation to the mRNA-based combination vaccine candidate against COVID-19 and influenza it is developing with BioNTech (BNTX).
I am recommending we roll our put out one week and to a higher strike to generate more income and reduce our net debit on the position.
You can enter the second leg of today’s trade even if you were not in the previous one. Just be aware that we will be managing and tracking it based on the ongoing position.
Current Stock Price: $54.57
Net Debit: $8.12
- Buy to close the PFE Dec Monthly (12/16) 48 Put for around $0.01
- Sell to open the PFE Dec Week Four (12/23) 53 Put for around $0.30
- Set your initial credit limit at $0.29, but adjust as needed to roll today
New Net Debit: $7.83
Expiration: After the close on Friday, Dec. 23
Potential Rate of Return: I am targeting breakeven for this position