4 Trade Ideas for Pfizer: Bonus Idea

• Posted by Greg Harmon
• on November 18th, 2019

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

Pfizer, $PFE, ran sideways in a long consolidation until breaking down in August. It found support later that month and bounced. It stalled and reversed in early September, building a symmetrical triangle. It broke that to the upside at the end of October and continued to resistance at the April low. There it reversed to fall back and retest the triangle break. Friday it held up there and reversed higher. The target from the triangle break remains above at 41.50.

The RSI is moving higher in the bullish zone with the MACD leveling as it pulled back to the zero line. The Bollinger Bands® have shifted higher. There is resistance at 37.80 and 38.70 followed by 39.85 and 40.60 before a gap to fill to 41.50. Support lower comes at 36.40 and 34.75 then 34.20. Short interest is low under 1%. The stock pays a dividend with an annual yield of 3.88% and began trading ex-dividend November 7th. The company is expected to report earnings next on January 27th.

The December options chain shows biggest open interest at the 38 and 39 strikes on the call side with some size at the 34 put. In January it is biggest at the 40 call but nearly matched at the 35 put. The March options are the first to cover the earnings report and they show size on the call side from 37 to 40 and then on the put side from 35 to 32.

Pfizer, Ticker: $PFE

Trade Idea 1: Buy the stock on a move over 37.50 with a stop at 36.

Trade Idea 2: Buy the stock on a move over 37.50 and add a December 37/36 Put Spread (33 cents) while selling the March 41 Calls (28 cent credit).

Trade Idea 3: Buy the December/March 39 Call Calendar (72 cents) and sell the December 35 Put (12 cent credit).

Trade Idea 4: Buy the March 35/38/40 Call Spread Risk Reversal for free.

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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 November options expiration in the books sees equity markets surging.

Elsewhere look for Gold to drift lower in consolidation while Crude Oil marks time moving sideways. The US Dollar Index is drifting to the upside while US Treasuries bounce in their pullback. The Shanghai Composite looks to drift down in consolidation while Emerging Markets remain in broad consolidation.

Volatility continues to remain very low keeping the bias higher for the equity index ETF’s SPY, IWM and QQQ. The SPY and QQQ look to continue the march higher while the IWM continues to churn in a wide consolidation at long term resistance. Use this information as you prepare for the coming week and trad’em well.

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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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