4 Trade Ideas for Pfizer: Bonus Idea

• Posted by Greg Harmon
• on July 19th, 2021

Here is your Bonus Idea with links to the full Top Ten:

Pfizer, $PFE, started higher off a retest low in March. It stalled in May short of the December peak. Since then it has bounced against resistance with rising downside support. It comes into the week rising and pressing open the Bollinger Bands®. The RSI is also rising into the bullish zone with the MACD lifting and positive. There is resistance at 40.70 and 41.45 then 42 before 43. Support lower comes at 39.50 and 39 then 38.50. Short interest is low at 1.1%. The stock pays a dividend with an annual yield of 3.87% and will begin trading ex-dividend on July 29th. The company is expected to report earnings on July 28th.

The July 30 Expiry options cover that report and show an expected move of about $1.65 by expiry. They have high open interest building from 40.50 to a peak at 37 on the put side. On the call side the open interest builds from 38 to a peak at 40 and tails after 41. The August chain has biggest open interest at the 39 put strike, tailing down to 35. On the call side it is also biggest at 39 and tails higher. September options show open interest spread from 30 to 40 on the put side, biggest at 35 and 32. on the call side it is biggest from 39 to 44.

Pfizer, Ticker: $PFE

Trade Idea 1: Buy the stock on a move over 40.70 with a stop at 39.20.

Trade Idea 2: Buy the stock on a move over 40.70 and add a July 30 Expiry 39.50/38 Put Spread (40 cents) while also selling the August 42 Calls (30 cents).

Trade Idea 3: Buy the July 30 Expiry/September 42 Call Calendar (40 cents).

Trade Idea 4: Buy the September 38/41/44 Call Spread Risk Reversal for 14 cents.

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After reviewing over 1,000 charts, I have found some good setups for the week. These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which as July options expiration and the first week of earnings season are in the books, saw equity markets came through them a bit worse for wear.

Elsewhere look for Gold to continue its short term uptrend while Crude Oil pulls back in its move higher. The US Dollar Index continues a short term move higher in consolidation while US Treasuries move to the upside. The Shanghai Composite looks to continue consolidation while Emerging Markets pullback as they consolidate over long term support.

The Volatility Index looks to remain low making the long term path easier for equity markets to the upside but drifting up to give them short term trouble. The SPY and QQQ charts continue to look strong on the longer timeframe, with the IWM testing support in its long consolidation. On the shorter timeframe both the QQQ and SPY are in pullbacks while the IWM is at risk for a bigger drop. Use this information as you prepare for the coming week and trad’em well.

If you like what you see above sign up for deeper analysis and trading strategy by using the Get Premium button above. As always you can see details of individual charts and more on my StockTwits page.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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