馃拪 PFIZER: DERIVATIVES TRADING 馃拪
Pfizer Inc. discovers, develops, manufactures, markets, distributes, and sells biopharmaceutical products worldwide. It offers medicines and vaccines in various therapeutic areas, including cardiovascular metabolic, migraine, and women's health under the Eliquis, Nurtec ODT/Vydura, and the Premarin family brands; infectious diseases with unmet medical needs under the Prevnar family, Nimenrix, FSME/IMMUN-TicoVac, and Trumenba brands; and COVID-19 prevention and treatment, and potential future mRNA and antiviral products under the Comirnaty and Paxlovid brands. The company also provides medicines and vaccines in various therapeutic areas, such as biosimilars for chronic immune and inflammatory diseases under the Xeljanz, Enbrel, Inflectra, Eucrisa/Staquis, and Cibinqo brands; amyloidosis, hemophilia, endocrine diseases, and sickle cell disease under the Vyndaqel family, Oxbryta, BeneFIX, and Genotropin brands; sterile injectable and anti-infective medicines under the Sulperazon, Medrol, Zavicefta, Zithromax, Vfend, and Panzyga brands; and biologics, small molecules, immunotherapies, and biosimilars under the Ibrance, Xtandi, Inlyta, Retacrit, Lorbrena, and Braftovi brands. Some insights are:
Pros:
- Good opportunities for price rebounds [See: https://jjplindex.blogspot.com/2023/11/sp500-appreciation-probabilities.html ]
- Company big enough to survive and bribe whoever has to do
- It has gaps that it must close (price action)
Cons:
- Bad technical structure (bearish trend) similar to PYPL
- Sales slowdown
- Problems and side effects with their medications
The current EPS [01/10/23 TTM] is ± $1.86 USD and a possible PER spread could be (ceteris paribus):
- PER 15: ≈ $ 27.9 USD
- PER 25: ≈ $ 46.5 USD
Levels:
The next support zone is at ≈ $25.9 USD and the great support is at ≈ $23 USD. The next resistances zones are ≈ $29.5 USD, ≈ $33.2 USD and ≈ $50 USD. The ≈ $28 > $35 USD zone is an indifference price, an optimal suggested target could be ≈ $33.2 USD and all above ≈ $35 USD could be highly speculative.
Hedge example:
- Call [sell]]: $42 USD
- Cal [buy]: $30 USD
- Put [sell]: $25 USD
- Put [sell]: $22 USD
Risks:
A minor risk is that the price does not exceed $30 USD, but could be compensated with the profit of the Call at $42 USD. The worst risk is the price exceeds $40 USD or that the price will fall severely below $22 USD for much time; for any case, a close position is required. For the case where the stock falls below $25 USD, the investor will need to start an accumulation phase. For the case that the stock exceeds $42 USD, the $50 USD is their last big resistance to short.
The best analysis is yours!
M.F. J. Joel Padilla
Copyright: Joel Padilla 2023
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