How I Use Cash-Secured Puts to Accumulate Dividend Stocks Like Pfizer (PFE)

As of February 13, 2026, our options income portfolio declined slightly by -0.33%, closing at $11,069.

Since I had already rolled my NVDA credit spreads out to the February 27 expiration, there were fewer opportunities for weekly NVDA premium generation. Instead of forcing trades, I decided to revisit a familiar name: Pfizer (PFE).

Why I Added Pfizer Back to the Portfolio

I view Pfizer as a potential long-term dividend holding rather than a short-term trading vehicle.

After closing a previous Shell position, some capital became available for a similar-sized setup. Rather than chasing a new speculative trade, I chose to deploy that capital into a company I already understand and would be willing to own if assigned.

Pfizer offered several characteristics I was looking for:

Established global pharmaceutical business
Dividend-paying stock
Reasonable valuation compared to recent years
Options liquidity sufficient for income strategies

This was not a prediction that PFE would return to $35 or $45 per share. It was simply a practical income and accumulation trade.

Using Options Premium to Build a Dividend Position

To initiate the position, I opened a PFE Feb 20, 2026 26.5/25 bull put credit spread.

I then used the premium collected to purchase an additional 0.5 shares of PFE, adding incrementally to the dividend side of the portfolio.

This approach aligns with one of the core principles behind this portfolio:

Rather than treating options premium purely as spending money, I prefer using it to acquire productive assets that can potentially generate future income.

Depending on how the trade develops, I may continue selling biweekly or monthly options on Pfizer with the long-term objective of gradually building the position toward 100 shares.

For investors interested in this approach, see: Cash-Secured Puts Explained: A Complete Guide for Income Investors.

Portfolio Performance Update

Despite the small weekly decline, the portfolio remained ahead of major benchmarks.

Portfolio: +3.32% YTD
S&P 500: -0.33% YTD
NVDA: -3.21% YTD

Short-term fluctuations are inevitable, but the broader objective remains unchanged: generate options income while gradually building a portfolio of productive assets.

Current Options Positions

NVDA Feb 27, 2026 170/150 Bull Put Credit Spread
2x BMY Mar 20, 2026 50/46 Bull Put Credit Spread
PFE Feb 20, 2026 26.5/25 Bull Put Credit Spread
NVDA Jun 18, 2026 $116 Covered Call

Most short-term premium generation continued to come from NVDA, while Pfizer represented an effort to diversify both sector exposure and future dividend income.

If you're new to bull put spreads, see: Bull Put Spread Strategy: A Complete Beginner's Guide.

Options Premium and Margin Debt

This week generated $14 in options premium.

That is obviously below the portfolio's longer-term income objectives, but not every week will be a high-premium week.

One lesson I continue learning is that forcing trades simply to increase premium often leads to poor risk-adjusted outcomes.

At the current margin balance of approximately -$3,919, maintaining a weekly average of $14 would theoretically require around 279 weeks to eliminate the debt entirely.

Fortunately, I do not expect future premium generation to remain at this level. The long-term objective remains reducing and eventually eliminating margin debt while maintaining a core holding of 100 NVDA shares.

For a broader discussion on realistic options income targets, see: Can You Really Earn $100 Per Week Selling Options?.

What I'm Watching Next

Looking ahead, the primary positions on my watchlist are:

PFE 26.5/25 Bull Put Credit Spread
NVDA 170/150 Bull Put Credit Spread

If either position comes under pressure, the plan remains unchanged:

Evaluate the probability of recovery
Roll forward when appropriate
Prefer collecting additional credit whenever possible
Avoid unnecessary risk-taking

Managing positions is often more important than opening them.

If you're interested in how I approach adjustments and rolling challenged trades, see: How to Manage a Credit Spread When the Trade Moves Against You.

Key Takeaway

This week reinforced an important lesson: not every successful week in options trading is defined by large premium income.

Sometimes the better decision is slowing down, avoiding unnecessary trades, and using available premium to gradually build positions in companies you are willing to own long term.

For me, Pfizer represented exactly that type of opportunity.

Disclaimer

This article is provided for educational and informational purposes only and should not be considered investment advice, financial advice, tax advice, or a recommendation to buy or sell any security or option contract. Options trading involves risk and may not be suitable for all investors. Past performance does not guarantee future results.