4 Trade Ideas for Pfizer: Bonus Idea

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

Pfizer, $PFE, comes into the week at resistance and on the edge of entering a low volume zone. The stock closed at a 3 month high with the Bollinger Bands® opening to the upside. The move higher last week out of a bull flag gives a target to 59.75. The RSI is holding in the bullish zone with the MACD crossed up and rising in positive territory.

There is resistance at 55.25 and 56.80 then 60 and 61.25. Support lower comes at 54 and 52.25 then 50.80. Short interest is low at 1.1%. The stock pays a dividend with an annual yield of 2.90% and has been trading ex-dividend since January 27th. The company is expected to report earnings next on May 3rd.

The April options chain shows the largest open interest at the 52.50 strike on the put side. On the call side it is biggest at 52.50 and 55. The May 6 Expiry options are the first to cover the earnings report and show the biggest open interest at the 54 put and then the 53 call. The May monthly options show open interest spread from 52.50 down to 37.50 on the put side. On the call side it builds from 45 to a peak at 57.50 and fades to 70. Finally, the June options show spikes at the 50, 47 and 45 put strikes, as well as the 50, 55 and 60 call strikes.

Pfizer, Ticker: $PFE

Trade Idea 1: Buy the stock on a move over 55.25 with a stop at 53.

Trade Idea 2: Buy the stock on a move over 55.25 and add a May 6 Expiry 53/50 Put Spread (80 cents) while selling the May 6 Expiry 60 Call (55 cents).

Trade Idea 3: Buy the May 6 Expiry/June 60 Call Calendar (60 cents) and sell the May 6 Expiry 50 Put (50 cents).

Trade Idea 4: Buy the May 50/57.50/62.50 Call Spread Risk Reversal (20 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 heading into April options expiration and the short pre-Easter week, saw equity markets had lost their strength.

Elsewhere look for Gold to consolidate while Crude Oil pulls back in the uptrend. The US Dollar Index continues to drive to the upside while US Treasuries drive lower in a downtrend. The Shanghai Composite looks to consolidate while Emerging Markets continue to move lower.

The Volatility Index looks to remain in the normal range making the path easier for equity markets to the upside. Their charts look weak though, especially on the longer timeframe. On the shorter timeframe the IWM, the QQQ and the SPY also look to have an easier path lower. 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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