The Silly Game Of Playing Pfizer Options
Last week I posted a blog about buying Pfizer Calls at the very end of a trading session when the DJIA was down 500 points. Options on stocks that are in $25.00 price range are highly leveraged and it doesn't take much of a move in the stocks price to generate a move in the underlying options. That's the logic behind this kind of trade. Today similiar circumstances (a sizeable drop) are brewing with the DJIA index now down in mid morning trading. Could these Call options rebound from an early morning drop? Here are two series of Call options to follow and Pfizer's current five day chart. .... .... Let's see what happens. Here is the 25 series of Calls again in the late morning trading. Now here is how they closed the day. This series did nothing all day and the DJIA never came back. Now this on Wednesday morning. $.25 to $.36. Let's see what happens from here.