Discover more from Covered Calls with Reinis Fischer
Sold 1 Call Option on PFE – 0.08% potential income return in 4 days
On October 18, 2021, I sold 1 call option on PFE stock with a strike price of $43 and expiry this Friday. I don't have actually 100 shares to deliver if challenged (I have some 14). In case of danger, I will roll up and forward this call option.
Pfizer Inc. is an American multinational pharmaceutical and biotechnology corporation headquartered on 42nd Street in Manhattan, New York City. The company was established in 1849 in New York by two German immigrants, Charles Pfizer and his cousin Charles F. Erhart
This is not trading advice. Investments in stocks, funds, bonds, or cryptos are risk investments and you could lose some or all of your money. Do your due diligence before investing in any kind of asset.
This trade comes as the #17 in the month of October, according to my trading plan for this month, the premium generated from this trade makes me about 0.6% of my $600 monthly goal. While in total I have reached already 44.9% so far. Awesome!
here is the trade setup:
SLD 1 PFE OCT 22 '21 43 Call Option 0.06 USD
What happens next?
On the expiry date, October 22, 2021, PFE is trading under $43 per share - options expire worthlessly and I keep premium - if PFE trades above $43 I'm troubled as I need to deliver shares I don’t have, to avoid such scenario I will roll up strike prices
Break-even price: $43+$0.03= $43.03