Tim Anderson, a Sanford Bernstein analyst, suggested today that Pfizer Inc. PFE might be considering a spin off of its lower margin businesses. CNBC Options Action's, Mike Khouw talked on the show about an options strategy in Pfizer Inc. (PFE) that could help you to profit on this comment from Mr. Anderson.
Mike Khouw said that a lot of people are buying at the money calls in April and May. He thinks that buying the April 20 calls for $0.37 is the best way to make a bullish bet on PFE. He would be paying only 2% of PFE's current price, and his break even would be at $20.37.
Pfizer Inc. (PFE) gained 1.75% today, and it closed at $19.81.
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