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This One Is Too Nervous To Watch. Pfizer

This is a short blog full of twists. Try to get through it. First a five day chart of Pfizer. chart. In the past week it was up $1.05 and it was the 7th most activity traded stock on the NYSE most active list. It's in a breakout mode. Look at how it traded over the last three years. This breakout mode might last a few days, weeks or months. This stock has a history of moving somewhat slower than most stocks. A second quarter earnings report comes out July 30th. If it's good that could add a touch to the stock's price. Now this. As a general rule stocks and options on stocks in this particular price range are difficult to play and in this case everyone is following the same story. Fred down the street and John around the corner and Mark across town are all dialed into the same commentary. There is nothing that really gives you an edge when it comes to playing it. That's the problem. Here now is a look at the Pfizer "next-week-out" $30.00 series of Call optio
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Tuesday May 11th. A 473 Point Drop In The D.J.l. In One Day With "Mcdonald's" Options Up and Down

I went into Tuesday with a "McDonalds" "Put" which I sold at 10:04 a.m. I had bought it just before close on the previous day because I liked the chart. First here is it's five day chart followed by a one day chart.
The market tanked on the opening and I didn't wait long to get out At 10:00 a.m. it seemed to be on a rebound. See the chart. I got out once again at 10:04 a.m. Here is the ticket. Like they say, shoot first and ask questions later. The printout is difficult to read but it says out at $5.30 This traded netted me $150.00. I was ok with that.
Everything was down but the day was early. Were the markets oversold? I turned around and played the upside. Sometimes that can be the worst strategy in the world and I did it with two trades.
I liked what I was doing because I was trying to play a morning bounce after a sharp morning decline and my fills on these two trades were at 9:52 a.m and 9:55 a.m..
I got out ten or fifteen minutes later at 10:09 a.m., 4 @ 1.95. I only made a few dollars but I didn't want to hang onto them and see them role over. I was free from that position. Or was I?. At 11:47 a.m. I got the itch again to be back in, this time paying $147.00 each for two contracts, on the same series of "Calls" I just had just got out of at 1.95. At the end the day they closed out a price a touch lower. I can live with that.
Later on in the day when the market started to stop dropping I bought yet another "Mcdonald" 232.50 "Call" at 3:15 p.m., this time with a next's week striking price. I will have eight trading days to sit on it. One of the reasons I like "Mcdonald's" at this point in time is that more people are getting out which should be good for sales and "McDonald's" is not a stock prone to unusual news reports. To be buting in "Calls" on a day the market is crashing hoping for a next day rebound really only make sense after a couple of days of downward markets. let's see what happens.

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