4 Trade Ideas for Pfizer: Bonus Idea

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

Pfizer, $PFE, topped in December and then started to move lower. It gapped down in February and then continued to the 200 day SMA for the first time since March 2021. The reversal there moved higher to find resistance at the November high. After some volatile consolidation it retested that resistance and the started lower again in April. It found support again shortly after breaching the 200 day SMA and consolidated. This was at a higher low and the 61.8% retracement of rise last winter, and the 38.2% retracement of the move up from the pandemic low.

Friday it broke strongly to the upside with the Bollinger Bands® opening from a squeeze. The RSI is rising back into the bullish zone with the MACD crossed up and now positive. There is resistance at 54.10 and 55.30 then 56.85 and 61.30. Support lower comes at 51 and 50 then 47.50. Short interest is low at 1.2%. The stock pays a dividend with an annual yield of 3.05% and started trading ex-dividend on May 12th. The company is expected to report earnings next on July 26th.

The June options chain shows the biggest open interest at the 49 and 50 put strikes and at the 50, 52.50 and 55 calls. In the July chain open interest is just starting to build but focused at the 50 put and the 55 call. The September chain has big open interest from 48 down to 28 on the put side, and spread from 47 to 60 on the call side.

Pfizer, Ticker: $PFE

Trade Idea 1: Buy the stock on a move over 52.80 with a stop at 51.

Trade Idea 2: Buy the stock on a move over 52.80 and add a June 52.50/50 Put Spread ($1.00) while selling the September 60 Calls (92 cents).

Trade Idea 3: Buy the June/September 55 Call Calendar ($1.60) and sell the July 47.50 Puts (70 cents).

Trade Idea 4: Buy the September 47/55/62.50 Call Spread Risk Reversal (30 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 May options expiration in the books, saw equity markets made new lows with the SPY reaching down into bear market territory, joining the IWM and QQQ, before rebounding at the close Friday.

Elsewhere look for Gold to possibly reverse higher while Crude Oil consolidates in an uptrend. The US Dollar Index is pulling back in its uptrend while US Treasuries bounce in their downtrend. The Shanghai Composite looks to continue the short term move higher while Emerging Markets continue the downtrend.

The Volatility Index remains elevated making the path easier for equity markets to the downside. Their charts look weak, especially on the longer timeframe as they dip into oversold territory. On the shorter timeframe both the QQQ and SPY sit at 52 week lows while the IWM is holding only slightly higher. 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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