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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

A Four Minute Quick Read on Caterpillar To Help Make You A Better Caterpillar Option Trader

I don't like buying Call options on Monday morning that expire on Friday. I tend to find them to expensive. Something unusual happened this morning. There was an announcement. Here it is.
February 9th was a Thursday. I congratulate Caterpillar for holding off until the Monday after, today to release this news. Can you imagine announcing it last Friday at noon and having short term Call option holders getting wiped out. So what happened on the opening to Caterpillar today? It tanked.
It tanked however it rebounded as the index closed super strong.
Now look at how low the Calls traded on the opening and how they came back. I watched it happen but opted not to play it. They opened at $3.90 and dropped to $285.00 before they jumped up. It's not every Monday the D.J.I. rallies over 376 points.
Two thoughts. 1) Releasing this kind of news on a Monday morning shows shewardship. 2) I opted not to play it. I don't like buying one week Calls on a Monday morning. That's just me.

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