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Pfizer Inc - how to capture a low risk gain of 100%

Posted by on in The Time Factor
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I'd like to share with you all a trade on Pfizer Inc. which I just completed and which I had written about in a previous edition of my monthly Time Factor Trade Report. I held the trade for just over 30 days and captured an exactly 100% gain on my position - or double my money in around a month.

The chart below was taken from the March edition of the Report and outlined the reasons for my trade.

As you can see, I was looking for a downward move in the price of Pfizer stock to the $31.98 level and purchased a $34.00 put option at a cost of 98 cents. Last week, the stock hit $31.97 and the options traded above $2.00 so I used this as an opportunity to exit the trade.

PFE - Mar Edition Time Factor report

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Whilst the price move down occurred as I had expected, surprisingly the implied volatility in the stock did not price up as I was expecting it to, and this capped my gains on the put option position to only 100%.

PFE - updated chart to 28 May

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You will notice in the chart below how the price movements in the options transpired. After trading sideways for such a long period of time, we finally saw some price movement higher in the put option position as Pfizer stock headed lower.

PFE - Jun 34 options

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 I think the latter half of this year is going to present some enormous opportunities to take advantage of low volatility in the market and to use Put Options to make gains of between 3,000% to 4,000% - yes, that is 30 to 40 times your initial outlay.

I will be writing about these opportunities to my subscribers in the next few editions of my monthly Time Factor Trade Report, so please stay tuned.

If you haven't yet subscribed or simply just want to learn more about the Time Factor Trade Report, then please feel free to email me at info@thetimefactor.com 

Until next time...

 

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