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Pfizer - Might It Jump?

Pfizer is somewhat range bound. In my blog yesterday I gave the example of how options it's short term options doubled in price on the opening. That event was a rarity and I referred to these options as being "suicide" options. It's options are super sensitive to any small changes in the stock's price. Here is Pfizer's "year-to-date" chart. It gets worse than that. Did you know that the Pfizer stock is down over 50% in the last three years? It doesn't help much to have Robert F. Kennedy Jr. on the scene. In spite of these circumstances here is a statement one of their companies spokespersons was recently brave enough to say. Now look at this chart. Do you ever think it's going to break above the twenty six dollar price level by January 16th 2026? This Call last traded at $.56 or fifty six dollars. Maybe a one year chart would be better to look at than a "year-to-date" chart. Should we listening to what that Pfizer spokesperon is...

Caterpillar Calls. A Classic Trading Situation.

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Early indications were that the markets were set to rally on Tuesday March 29th. Most of the stocks that is except for Caterpillar. I scurried around looking for news as to why Caterpillar was trading lower in the premarkets but couldn't find anything. Caterpillar, in spite of it's size often seems to trade in a bubble. It's movements up and down seem so random. Institutional shareholders move huge blocks of stock in very selective ways. Within only a few minutes of trading the markets were up strongly but Caterpillar was going in the opposite direction. When you look at it's opening chart below one would have to ask themselves if there would be any support at the $219.00 dollar price level. It's the falling knife syndrome. If you're looking for a reversal when do you buy in? With the markets so strong one would think it's only a matter of time before the stock stops falling. Well look at the volume of trading on the 220 Caterpillar Call series (that expi...

Deere and Company - One Of The Most Dangerous Series Of Call and Put Options to Play When There Is Only Hours To Go.

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If you have winnings from a previous trade sometimes you value that money differently. It's difficult to explain why but there are scholars out there who have written books on this very topic. It's like play money or free money that you can now use to make the wildest option trades you can think of. It's money you feel you can risk. It's like being a kid in a candy store with money in your pocket. Everything looks good.There are two stocks that I sometimes follow, Dominos Pizza and John Deere. Both have options available to trade on them however the Call and Put options on the first one, Dominos are near impossible to trade. Why? Well on a Friday morning with options expiring that day on it, how do you predict which direction the stock on the world's largest pizza company is going to go? The answer is you can't. The company is painfully aware that one news release about the price of cheese going up or problems with their ordering apps could send their stock int...