Cabot Options Institute Income Trade Alert (PFE)
As part of the Income Wheel approach, we allowed our Pfizer (PFE) puts to expire in-the-money at expiration last week. As a result, we were issued shares at our chosen put strike of 49.
Today, as our Income Wheel strategy states, we are going to sell calls against our newly issued shares in PFE. We are not selling naked calls, so you need to have at least 100 shares if you wish to enter a new position in PFE. For those of you that are new to Income Trader and wish to follow along with PFE, buying at least 100 shares of PFE for every call contract you wish to sell is required as we are in the covered call phase of the Income Wheel strategy for PFE.
Here is the trade:
Sell to Open PFE October 21, 2022 50 calls for $1.50.