Investors in Pfizer Inc (PFE) can now access new options, specifically an October 23rd call contract priced at $29.00. This contract carries a current bid of $0.59, while PFE shares are trading at approximately $28.59. If investors purchase the stock and sell the call as a “covered call,” they would be committing to a total return of 3.50% at expiration, exclusive of dividends.
The $29.00 strike price represents a 1% premium over the current trading price, indicating a 56% probability that the call contract may expire worthless—allowing investors to retain both their shares and the premium collected, which equates to a 2.06% additional return or a 15.06% annualized yield. Implied volatility for the contract is 25%, while actual trailing volatility is calculated at 24%.
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