Rolled Pfizer Puts

I was short the Pfizer April 17 puts and have shorted the May 17's. Pfizer continues to act horribly as investors look for anything with economic exposure at any price. Between the years 2010 and 2015 Pfizer is expected to earn $15. Now that's a margin of safety. I plan on continuing to sell puts every month and take delivery if necessary. I will be more aggressive and buy the stock outright when they start to buy back shares.

3 comments:

Onlooker said...

PFE has an interesting chart. Looks like it may well be bottoming, getting ready to take off a bit. Some nice positive divergences there and looks like it's getting so getting support right about here. Getting support at the 200 DMA and the 20 & 50 are converging in an interesting way.

I don't know what it would do if we get a wider market swoon, but since it's been lagging badly I'd think it would hold up better.

Anonymous said...

what happens at the end the month whe your puts expire and its under 17?

Tsachy Mishal said...

I take delivery of the stock.