Options Trade – Pfizer Inc (PFE)

I let the cash secured puts I sold on Pfizer Inc (PFE) last month expire today for a total profit of *$540.00.

I decided to change things up and do a new covered call, rather than rolling the old puts that expired – both were paying about $0.88, but I want to collect the $0.42 dividend Pfizer is paying next week.

Here is the trade:

• Bought: 1000 Shares of PFE at $28.32
• Sold: Ten (10) PFE Feb 16, 2024 Calls at $0.88
• Strike Price: $28.00
• *Premium Collected: $880.00

Pfizer is trading near its 52-week low, trading at over a 33% discount to its $42.00 Morningstar Fair Value estimate – so I have no problem holding it. PFE will also go ex-dividend next week, so I will collect another $420.00 at the end of the Month. If my shares are called away in Feb – it would be a quick *$980.00 profit.

*Excludes transaction costs.