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Income Trader
Reliable Income From Time-Tested Strategies

January 20, 2023

Cabot Options Institute Income Trader – Alert (PFE)

Pfizer (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.

PFE is currently trading for 45.

Here is the trade:

Sell to Open PFE March 3, 2023, 46 (covered) call for $1.00 (adjust accordingly, prices may vary from time of alert).

COI_IT_012023_PFE_open.png

As always, if you have any questions, please feel free to email me at andy@cabotwealth.com.


Andy Crowder is a professional options trader, researcher and Chief Analyst of Cabot Options Institute. Formerly with Oppenheimer & Co. in New York, Andy has leveraged his investment experience to develop his statistically based options trading strategy which applies probability theory to option valuations in order to execute risk-controlled trades. This proprietary strategy has been refined through two decades of research and real-world experience and has been featured in the Wall Street Journal, Seeking Alpha, and numerous other financial publications. Andy has helped thousands of option traders learn and implement his meticulous rules-driven options trading strategies through highly attended conferences, one-on-one coaching, webinars, and his work as a financial columnist. He currently resides in Bolton Valley, Vermont and when he’s not trading, teaching and writing about options, he enjoys spending time with his wife and two daughters, backcountry skiing, biking, running and enjoying all things outdoors.