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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