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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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Caterpillar - A Mid Week Reversal

Wednesdays are one one day of the week that reversals might happen and Caterpillar jumped on the opening today. Sometimes I talk about the importance of mid week reversals.
Now watch how the 260 Puts traded which expire at the end of the week.
In at 9:50 a.m. and out at  the end of the day. The 255 Puts would also work with the same timing.
Now the question. Why did more Puts trade than Calls? The answer could be that good traders know to watch for this kind of mid week chart formation.

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