Doing this trade with Pfizer Inc (PFE) mostly out of boredom which is not good (must ignore the VIX sitting under 13) – anyway, here is the trade:
- Sold: Ten (10) PFE Jan 19, 2024 Puts
- Strike Price: $28.00
- *Premium Collected: $540.00
If I am forced to buy the 1000 shares, my entry price will be approx. $27.46 per share – which is below its 52-week low and over a 41% discount to Pfizer’s Fair Value of $47.00 per share – providing a comfortable Margin of Safety. Pfizer also pays a nice 5.7% dividend I would start collecting in late January 2024.
Hopefully all the bad news is out of this stock by now – started the year in the low $50’s and has been trending down ever since.
*Excludes transaction costs.
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