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Showing posts from August, 2021

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History Tells Us That Pfizer Might Sell Off

Here is how Pfizer traded over the last five trading sessions. $24.00 to almost $26.00 is a large move for this stock in such a short period of time. That doesn't happen very often. Now this, a look at how this stock has traded in the last three months. Here is what this one series on "in-the-money" Puts that expire on Friday are now trading at . So what's going on? Well their is one drug stock that is leading the pack today and helping to drive up the prices of many of the stocks in this same sector. Eli Lilly is on a bit of a terror. Now the same Pfizer Puts on Thursdays opening. Notice how much they fluctuated on the day? Now here is how they closed out the day. These options have one day of life still left in them. What a tough game to play. Now here now is the important part. Look at how these Puts traded minute-to-minute on the day. Getting in around 10:00 a.m. and out anytime in the afternoon was the best way to play it. It helped that the markets crash...
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The Power of "Ford" Options

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Why am I stuck in the mud watching Ford when there are hundreds of more exciting stocks to watch? That's a good question. The answer I guess has something to do with the concept of leverage and how options on stocks in the five to fifteen dollar price range can sometimes have explosive moves based on percentage increases in short periods of time. Look at this week's chart of Ford and look at the opportunities it provided option playes. So the question then becomes how is it possible to anticipate these moves? Well the first big move upwards on the far left hand side of the chart was an earnings release explosion. The following chart better shows how the stock traded in the few days leading up to the release of this news. That was an instant double if you were paying the short term Calls. In at 3:58 p.m. on the previous trading day and out at 9:34:00 a.m. on the following morning. Trying to anticipate earning reports is tricky. With Ford there were reports of chip shortages...
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