The Best Covered Call Strategy to Trade High-Yielding Pfizer Stock and Earn Extra Income

Company Performance - Pfizer (PFE) has shown strong performance in 2026, with a year-to-date increase of 9.64% [1] - The current dividend yield for PFE is 6.42%, making it attractive for income investors [2] Covered Call Strategy - A covered call strategy can generate additional income from high-yielding stocks like PFE [2] - Buying 100 shares of PFE costs approximately $2,723, with a May 15, $30 strike call option trading at around $0.24, generating $24 in premium per contract [3] - Selling the May $30 strike call option can yield an income of 0.9% over 65 days, equating to an annualized return of about 10.9% [4] - If PFE closes above $30 at expiration, the total return could reach 10.9%, which annualizes to 61.0% [4] Alternative Covered Call Example - An alternative covered call using the December 18, $30 strike option can generate an income of 5.2% over 282 days, translating to an annualized return of approximately 6.7% [5] - If PFE closes above $30 at expiration, the total return could be 15.6%, which annualizes to 20.2% [5] Technical Opinion - The Barchart Technical Opinion rates PFE as a 100% Buy, indicating a strong short-term outlook for maintaining the current direction [7] - Long-term indicators support a continuation of the trend, with implied volatility at 25.34%, compared to a 12-month low of 18.25% and a high of 52.17% [7] Company Overview - Pfizer Inc. is a research-based, global biopharmaceutical company with a sustainable pipeline and multiple late-stage programs that can drive growth [8]