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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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Lowes / Apple

The first trading morning of the week are always difficult to play because the premiums on Call and Put options which expire on Friday are always excessive. In this instance Monday was a holiday so today, Tuesday was the first day of the week. I found myself focused on 'Lowes' because it was dropping in price when everything else I usually follow seemed to be going up. I had played it last week. Here is what I did.
In at 10:53 a.m. at $4.06 and out at 11:53 at $4.63. A one hour trade. Here is it's chart, I caught the rebound.
What was odd about this trade? Well look at how few contracts traded early in the morning.
Only one contract traded in the first ten minutes of trading and at 10:53 a.m. only two contracts had traded. In total there was only thirty five outstanding contracts. What a crazy low number.
Contrast these open interest numbers and daily number of contracts traded to the action on the day in "Apple". The numbers you are about to see are shocking.
63,361 contracts ended up trading on this series of Call options in one day with an open interest at the end of the day of only 4,565 contracts. So many traders are making this series of options as "go to" options looking to capitalize on daily market swings. They are inexpensive, move up and down quickly and offer instant liquidity. Playes sometime purchase them in quantities of one hundred or more at a time. Here is "Apples" one day chart.
I did a feable trade in it and got out and broke even. it's all about catching an interday swing and getting out. Here is how they traded on the day and here is what did. I was lucky to get out and call the trade a wash. It ended up closing lower.
The takeaway on all of this is that traders are now using "Apple" Calls as a trading vehicle in a big way.

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