After being out of the trading game for a while, I decided it was time to get my feet wet again. I didn’t want to jump in with massive size right away—instead, I treated this as a “practice run” with a small amount of capital to shake off the rust and test my execution.

I chose a Poor Man’s Covered Call (PMCC) on Pfizer (PFE) as my comeback play. This trade turned into a great exercise in active management and “rolling” positions to lock in profits.

The Thesis: “Value Meets Catalyst”

My outlook was simple: PFE looked fundamentally undervalued. I bet the stock would beat earnings and see a post-report recovery. I used a LEAP (Long-Term Equity Anticipation Security) to control 500 shares at a fraction of the cost of the actual stock.

The Setup & Price Action

• PFE Price at Open (2/3): $25.50
• PFE Price at Close (3/10): $27.22
• Total Underlying Gain: +$1.72 per share (6.7%)

Active Management: The “Roll” on 3/4

One of the most important parts of this trade happened on March 4th. As PFE climbed toward my target, I decided to reposition to protect my gains:

1. Rolling the LEAP: I sold my original $20 strike LEAPs for a $585.00 profit. I immediately “rolled up” into $25 strike LEAPs. This move allowed me to pull my original profit out of the trade and reduce my total capital at risk while still maintaining exposure to the upside.
2. Selling the Next Call: Simultaneously, I sold a new round of short calls ($27.50 strike) against the new LEAPs to continue generating “rent” (theta decay).

How the Numbers Shook Out

Component	Action	Result
Initial LEAP (2/3 – 3/4)	Bought $20 Strike / Sold at Profit	+$585.00
Second LEAP (2/24 – 3/10)	Bought $25 Strike / Sold at Profit	+$50.00
Short Call Cycle 1	Sold $27.50 strike (Profit)	+$128.76
Short Call Cycle 2	Sold $27.50 strike (Managed Exit)	-$56.24

Why I Closed the Trade on 3/10

Even though this trade was generating income, I decided to close the entire position.

• Efficiency: While 2% a month is a great target, it was a small absolute dollar amount for the capital I had tied up ($3,000+).
• The Goal was Practice: This was about getting my rhythm back. I hit my target, the post-earnings “meat” of the move was over, and the execution was clean. I wanted to realize the total win and move on.

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Key Takeaways from this Trade

• Rolling for Profit: By rolling the LEAP up on 3/4, I “de-risked” the trade. I took my initial profit off the table while staying in the game with a higher strike. It’s a great way to sleep better at night when a trade goes your way.
• Leverage is Key: PFE only moved 6.7%, but because of the PMCC structure, the total return on capital was over 22% in just 35 days.
• Don’t Marry the Trade: Just because a strategy can generate monthly income doesn’t mean you have to stay in it. If the capital could be working harder elsewhere, don’t be afraid to take your wins and exit.
• The Power of Practice: Starting small after a hiatus allows you to focus on the process rather than the payout. My execution on the 3/4 roll proved I still had the “feel” for the tape.

Final Scorecard:

• Total Profit: $707.52
• Days Held: 35
• Annualized Return: 143.97%

I’m officially back in the game. On to the next one!