Sold 1 Put on PFE Stock – 0.65% potential income return in 14 days
On December 22, 2023, I sold 1 put option on Pfizer stock (NYSE:PFE) with a strike price of $27.5 and expiry on December 29, 2023. For this trade setup, I was rewarded with $7 (after commissions).
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.
Here is the trade setup:
SLD 1 PFE DEC 29 '23 27.5 Put Option 0.08 USD
What happens next?
On the expiry date, December 29 , 2023, PFE is trading above $27.5 per share - options expire worthlessly and I keep premium - if PFE trades under $27.5 on the expiry date, I risk getting assigned 100 shares and paying for them $2,750
Current break-even price: 27.5-0.11-0.07 = $27.32
In case of an assignment, I will turn this trade into a wheel strategy and will start selling covered calls.
Anyhow, if troubled with the strike price near the expiry, I will try to roll it forward and down, preferably for credit, before actually taking the stock assignment.
In total: 2 trade since December 15, 2023
Options premium: $18