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My Addiction To Pfizer Options.

I am sure it will go away but here is today's action. Addiction may be the wrong word, perhaps fascination is better. The DJIA index closed up 588 points on the day, a Wednesday after losing more than that on the previous day. Now Pfizer's one day chart. Can you see how it got dragged up? Now this. A look at it's Puts which expire on Friday. Now this. There was no trading in them during the last 2.5 minutes of trading. In some ways that's a good thing. Could tomorrow's market open down? Here is what it's five day chart now looks like. At 9:32 a.m. this morning it was trading at $25.62 and at 10:02 a.m. it traded down to $24.44. A drop like that on tomorrow's opening would do wonders for these Puts. Let's see what happens.
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A Follow Up to A March 29th Blog About Options in the $5.00 and $10.00 Range.

 First, look at how these three stocks are popping this morning when the overall markets are trading down. Options on stocks in the $5.00 and $10.00 range can surprise.

Here is todays action, a Monday morning in the first hour of trading.



All three of these companies operating in the same space are jumping in unison. Now look at this printout of my May 28th blog.


Well back then I was talking about the power of long tern options and I used the example of a "Unusual Machine" Nov 21st Call with a five dollar striking price. Now here we are only a few days later and look at where this series of Call options are now trading.

Note the open interest in these Calls have decreased as earlier traders have taken their profits and run. Once again,  longer term options on $5.00 and $10.00 stocks can surprise.  All three of these companies don't really have the earnings to support these prices  so options on them are dangerous. Why not do you homework and make lists of stocks in this price range which have options on them? 

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