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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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The Chaff From The Hay - Deere

Here is Wall Street putting a spin on farming.
What does all this mean for Deere and how this stock trade? Look at it's one year chart.
I have talked about options on Deere before. It's options are thinly traded and money can be made taking postions thirty days out and guessing right which direction it is going to go. Stories like this can help to change the needle. Now I would like to show you an example of an October "out-of-the-money" Calls.It is buying one months of time. Deere is at $372.00 and it would have to go up to $385.00 just to break even. Look at the chart. Is that a reasonable expectation? On first glance you might say that this series of Call option is to expensive. You might also say look at how insignificantly small the "open interest" is.
Let's now move forward one week and show a one week chart on Deere and revisit these Call options to see where they are now trading.
Ouch! That's what happens when Deere drops eighteen dollars in one week and your caught going the wrong way. Deere Calls and Puts can be good vehicles to use to catch directional moves in volatile markets.

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