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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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Boeing and Caterpillar

These blogs are starting to get repetitive. Blogs about Boeing and Caterpillar rising after Monday's meltdown. The DJIA was up today over 500 points and here is how these two companies did.
Look at the extremely light volume in both of these two Call option series. What does this tell us? Two things. It tells us about the sophistication level of today's traders. Getting in on a Thursday looking for a one day bounce is not a smart way to trade. Secondly, these are both "in-the-money" postions and the best percentage kicks happen with near-to-the-money options. Let me show you the swings on the 195.00 and 197.50 Caterpillar Calls today. Both were up over 200%.
In both of these series the volume of trading exceeded the open interest levels. Out-of-the money postions in near term expiring Calls is where the action is on days that enjoy 500 point rallies.

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