Barchart reports that Pfizer Inc. (PFE) stock is showing unusual put optiohttps://www.barchart.com/stocks/quotes/PFE/overviewn activity in yesterday’s trading. Does that mean investors have turned bearish? Not necessarily, especially given the company’s upgraded guidance.
PFE stock closed at $24.92 on Tuesday, August 26, down from a recent high of $25.88 on August 22. However, it’s up from a recent trough of $23.29 on July 31. That was just before it released Q2 earnings on Aug. 5.
However, with Barchart’s Unusual Stock Options Activity Report today, some may be wondering if investors have turned deeply bearish.
The Report shows that over 25,000 in-the-money (ITM) put contracts have traded for the expiry period ending Sept. 12, 2025, which is 17 days from today.
PFE puts expiring Sept. 12, 2025 – Barchart Unusual Stock Options Activity Report – Aug. 27, 2025
The put contracts have a strike price of $26.00, which is $1.08 higher than the closing price of $24.92, making them “in-the-money” (ITM). The premium at the midpoint is $1.15, so any investor buying these puts has a breakeven point of $26.00-$1.15, or $24.85.
That is only 7 cents lower than the trading price, so not much. It indicates that these buyers feel strongly that PFE will fall to below that breakeven by Sept. 12. However, their long investment has a good deal of intrinsic value, assuming PFE stock stays flat.
For example, if PFE closes at $24.92 on Sept. 92, the puts would still be worth $1.08 ($26-$24.92), giving them a loss of just 6.36% (i.e., $0.07/$1.15). That means they have hedged their bet that PFE will fall here quite a lot.
On the other hand, short sellers of these puts are already obligated to buy shares at $26.00. But, given the $1.15 in income they have received already, their net cost is just $24.85, or 0.28% below today’s trading price.
They are hoping/betting that PFE will rise to $26.00 or higher by Sept. 12. At that point, over $26.00, they won’t have an obligation to buy shares at $26.00. Their investment would have made a 4.42%…
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