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Top Trades for Tue, 02 Feb 2021 13:49 – PFE

phil
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Top Trades for Tue, 02 Feb 2021 13:49 – PFE
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PFE/Maya – I'm baffled as clearly they spent a fortune in R&D to develop the vaccine and now they reap the rewards.  As a new trade, I'd go for:

  • Sell 10 PFE 2023 $33 puts for $5.15 ($5,150)
  • Buy 20 PFE 2023 $30 calls for $7 ($14,000) 
  • Sell 20 PFE 2023 $37 calls for $4 ($8,000) 

That's net $850 on the $14,000 spread that's $10,000 in the money to start with $13,150 (1,547%) upside potential if PFE can manage to gain $2 from where it is now over the next two years.  I like those odds!   Worst case is, of course, owning 1,000 shares with a loss of the $8.50 so net $30.85 is still $4 (12%) off the current price.

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