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 approaching resistance. It has a RSI in the bullish zone with the MACD positive and rising. The Bollinger Bands® are also pointing higher. There is resistance at 26 and 26.50 then 27 and 27.35 before 28.25 and 29.10. Support lower is at 25.50 and 25 then 24.50 and 24.20. Short interest is low at 2.3%. The stock pays a dividend with an annual yield of 6.68% and has traded ex-dividend since November 7th.

The company is expected to report earnings next on February 2nd. The December options chain shows biggest open interest at the 24 then 22.50 put strikes and at 26 then 30 on the call side. in the January chain open interest is biggest at 25 and 22.50 on the put side and at 30 on the call side. Finally, in the February chain the open interest is biggest at the 24 put and the 27 call strikes.

Pfizer, Ticker: $PFE

Trade Idea 1: Buy the stock on a move over 26 with a stop at 25.

Trade Idea 2: Buy the stock on a move over 26 and add a January 25 Put (52 cents) while selling the February 28 Call (39 cents).

Trade Idea 3: Buy the December/January 27.50 Call Calendar (23 cents) and sell the December 24.50 Put (17 cents).

Trade Idea 4: Buy the February 24/27/31 Call Spread Risk Reversal (2 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 with the month of November in the books, saw equity markets weather another shallow pullback and looking strong again.

Elsewhere, look for Gold to continue the uptrend while Crude Oil holds lower in consolidation. The US Dollar Index continues the short term drift to the downside while US Treasuries continue in consolidation still teasing of a possible reversal higher. The Shanghai Composite looks to continue the uptrend after some digestion from the 10 year highs while Emerging Markets find support and reverse in their uptrend.

The Volatility Index looks to continue to hold in the normal range after a pullback, making it easier for equities to move higher. The charts of the SPY, the IWM and the QQQ look strong on the longer timeframe after reversals on the week. On the shorter timeframe the SPY, the IWM and the QQQ have regained their swagger with strong moves higher, the IWM leading the charge. 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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