Pfizer Will be Protected By Biotech’s Fundamentals

Pfizer (NYSE:PFE) in my opinion will be protected by the strong fundamentals in this sector. As we can see from the chart below, the stock has traded in a range over the past 24 months. The stock pays out a current 3.42% yield and is an excellent trading stock due to its high liquidity. Implied volatility is low at present so one should probably wait to sell option premium in here.

I still maintain having a bullish stance trading this stock. Its newcomers such as¬†Xeljanz and Ibrance are growing like gangbusters since being launched and with Xtandi expected to be on the books before years end, I can’t see this stock going much lower. When volatility spikes in Pfizer, one could retain a bullish bias by selling a larger amount of put options in the underlying compared to calls.

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