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Pfizer - Five Day Options Starting On A Monday Morning.

Monday December 29th The DJIA dropped on the opening. Not a massive drop, just like 250 points. So I am looking at Pfizer again, this time to the upside. It's only down $.07. The option volume is healthy which is a good thing. If the markets rebound these options will be super sensitive to a rebound. It's only Monday and these options have all week. By waiting until the afternoon hopefully morning jitters are behind us. Now this, a look at it's five day chart. Charts are important. Now a 2:05 p.m. update. First it's current one day chart and another market update. The markets are still struggling. Now this at 2:09 p.m. Now it's final Monday closing reading. The markets never rebounded. So what next? Pfizer the following morning. These Call options are now "out-of-the-money" and are super sensitive to the stock's lastest two cent drop. Here is it's chart. The open interest in the Puts is now double what it is in the Calls. The nice things ...
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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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