The second trade I made yesterday was for Pfizer Inc (PFE).
Here is the trade:
- Sold: Ten (10) April 16, 2021 Puts
- Strike Price: $32.00
- *Premium Collected: $505.00
If I am forced to buy the 1000 shares, my entry price will be approx. $31.40 per share – over a 21.5% discount to Pfizer’s Fair Value of $40.00 per share – providing a comfortable Margin of Safety. Pfizer also pays a nice 4.61% dividend.
*Excludes transaction costs.
Leave a Reply