The previous Puts I sold on Pfizer Inc (PFE) expired. I was waiting for a down day to try again – yesterday was the day.
Here is the trade:
- Sold: Ten (10) November 15, 2019 Puts
- Strike Price: $34.00
- *Premium Collected: $1,050.00
If I am forced to buy the 1000 shares, my entry price will be approx. $33.95 per share – over a 26% discount to Pfizer’s Fair Value of $46.00 per share – providing a comfortable Margin of Safety. Pfizer now pays a 4.06% dividend.
*Excludes transaction costs.
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