Date: March 1, 2026
Ticker: PFE (Pfizer)
Current Price: $27.63
Position: Poor Man’s Covered Call (PMCC) – 5 Contracts
Executive Summary
The Pfizer PMCC continues to be a high-performance engine in the portfolio. After banking a $585.00 profit on the initial LEAP leg earlier this month, the focus has shifted to squeezing maximum efficiency out of the short side. With PFE currently testing the $27.50 level, I am preparing for a major “Roll Up and Out” to the April expiration to capture significant premium.
The Game Plan: Monday’s “Income Harvest”
My primary objective for Monday’s open is to roll my 5 short calls from the March 6th $27.50 strike to the April 17th $28.00 strike.
The Logic Behind the April 17th $28 Roll:
- Target Credit: I am aiming for a credit in the $0.40 – $0.45 range. At 5 contracts, this represents a cash infusion of roughly $210.00 – $225.00.
- Why the $28 Strike? While I considered the $29 strike, the premium there is nearly non-existent. Taking the $28 strike allows me to aggressively lower the cost basis of my $25 LEAPs while still giving the stock room to breathe.
- The “Double Win”: I am effectively getting paid to move my “profit ceiling” higher.
Strategic Timing: Dividends & Earnings
This specific roll is a tactical “Goldilocks” play:
- Post-Dividend Drift: PFE pays its $0.43 dividend on March 6th. While I don’t collect the dividend on a LEAP, the stock price is expected to drop by that amount on the payment date. This “dividend dip” creates a natural buffer that helps keep our $28 short call out of the money.
- Pre-Earnings Exit: Pfizer is expected to report earnings on April 28th. By choosing the April 17th expiration, I harvest the maximum time decay (Theta) and close out the obligation before the uncertainty of the earnings call hits.
Current Position Metrics
| Leg | Strike | Expiration | Strategy |
| Long Leg (LEAP) | $25.00 | 01/17/2027 | Bullish Anchor |
| Short Leg (Target) | $28.00 | 04/17/2026 | Income / Basis Reduction |
- Current Annualized Return: 199.79%
- Projected New Basis: ~$3.27 (Targeting an additional $0.42 credit)
Closing Thoughts
Trading 5 contracts allows for meaningful cash flow. By prioritizing a $0.42 credit over a “hopeful” $29 strike, I am treating this trade like a business—collecting rent and reducing risk. Monday’s open will be about execution: I’ll be watching the bid/ask spread closely to ensure we hit that $0.40+ credit target.
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