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Chasing Unusual Charts. Pfizer

This stock had an unusual trading pattern last Friday. It is now Monday morning and this weeks option trading will be shortened by one day because of thanksgiving on Thursday. Here is the stock chart I am referring to. $24.50 to $25.50 in one day and now chilling at $25.00. It now has to move one way up or down. How do you decide which way? That's the issue. To buy both the Calls and the Puts means that you are going to get burnt one way. Here are the pricings on both the Puts and the Calls two minutes into the opening trading. The open interest in both the Calls and Puts is next to nothing. One thing is for certain. Traders are soon going to wake up to this action. The spread between the "bid and ask" on both series is $.05. That's not an issue. Lets check in at 9:58 a.m. to see what is happening with both the Calls and the Puts. .............. So what to do? Wait. It's now 10:47 a.m. It's now 11:00 a.m.. If we are going to make a stab at playing the d...
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Toyota

Very few option contracts trade on Toyota. I have wondered why and offer one potential explanation. It's listed on multiple exchanges around the world and "option makers" in North America are basically just following the action. If the markets open stronger in North America that means Toyota traded stronger overnight on markets overseas. Secondly, the Calls and Puts trade in incriments of five dollars.There are for example 135 Calls, 140 Calls, 145 Calls. Having a five dollar spread wipes out the incentive try to daytrade option series which are soon to expire. If the stock moves from 142 to 143 the "bids and asks" on a 140 series of Calls might hardly change. It's not like trading the stock like Boeing where you can get in and out with option series set up in increments of $2.50 . Here is it's one month charts. The company now has a new C.E.O who is getting criticized for not moving to go electric quickly enough.
What I am now about to show you might discredit some of my above points. It's a five day chart on Toyota and look how all the action seems to happen on the opening. Why? It's the effect of overnight trading on other markets. Our North American trading follows Toyota's overseas market trading.
Now back to my point of how contracts trade. A volume of three and twelve contracts in the 140 Calls and Puts series that expire soon. Look at how wide apart the "bids and asks" are and how low the outstanding number of open contracts are. It's crazy.
Toyota is a great company. It's just not one that attracts option players.

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