Trade of the Week: Pfizer

Options Portfolio Manager – Investors Alley • Dec 28, 2020 at 8:51 AM EST

Pfizer has been a hot stock this year as it is the first company to get a Covid-19 vaccine to the market.

(Video length 00:04:42)

Pfizer (PFE) has been a hot stock this year as it is the first company to get a Covid-19 vaccine to the market. While a vaccine isn’t going to make or break a pharmaceutical giant like PFE, it certainly isn’t going to hurt the bottom line either.

PFE stock has had a decent year so far, although the share price has dropped recently. At least one trader thinks the stock may bounce back by mid-January. This person or fund purchased covered calls to express that opinion. Covered calls allow for some upside potential while providing an additional yield while holding the shares.

Disclaimer:

Information contained in this email and websites maintained by Investors Alley Corp. ("Investors Alley") are provided for educational purposes only and are neither an offer nor a recommendation to buy or sell any security, options on equities, or cryptocurrency. Investors Alley and its affiliates may hold a position in any of the companies mentioned. Investors Alley is neither a registered investment adviser nor a broker-dealer and does not provide customized or personalized recommendations. Any one-on-one coaching or similar products or services offered by or through Investors Alley does not provide or constitute personal advice, does not take into consideration and is not based on the unique or specific needs, objectives or financial circumstances of any person, and is intended for educational purposes only. Past performance is not necessarily indicative of future results. No trading strategy is risk free. Trading and investing involve substantial risk, and you may lose the entire amount of your principal investment or more. You should trade or invest only "risk capital" - money you can afford to lose. Trading and investing is not appropriate for everyone. We urge you to conduct your own research and due diligence and obtain professional advice from your personal financial adviser or investment broker before making any investment decision.