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History Tells Us That Pfizer Might Sell Off

Here is how Pfizer traded over the last five trading sessions. $24.00 to almost $26.00 is a large move for this stock in such a short period of time. That doesn't happen very often. Now this, a look at how this stock has traded in the last three months. Here is what this one series on "in-the-money" Puts that expire on Friday are now trading at . So what's going on? Well their is one drug stock that is leading the pack today and helping to drive up the prices of many of the stocks in this same sector. Eli Lilly is on a bit of a terror. Now the same Pfizer Puts on Thursdays opening. Notice how much they fluctuated on the day? Now here is how they closed out the day. These options have one day of life still left in them. What a tough game to play. Now here now is the important part. Look at how these Puts traded minute-to-minute on the day. Getting in around 10:00 a.m. and out anytime in the afternoon was the best way to play it. It helped that the markets crash...
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Boeing Calls Monday and Tuesday

Why am I hung up on writing about options on Boeing? Here is why. Here is how the markets are trading today (a Monday) minutes before the closng bell.
It's a strong upwards trading day after a 600 point drop on Friday. Now it's "one-day" trading chart.
Now here is how the Call options traded / closed on the day.
This chart in red ink shows a rebound that lasted the entire afternoon. That's the type of rebounds to look for, rebounds that are not complicated. Did Tesla sell off around 11:30 a.m.? Yes.
Many other stocks opened strong and stayed strong as the DJIA shot up 585.00 points on the day with a super strong closing. Playing Boeing options is both an exercise in trading Boeing and an exercise of trading the strenght in the overall markets. .......................................................................................................................................................................................................................................................................................... Now for part two of this blog. A look the next day, Tuesday's action. This time the DJIA was down slightly on the day.
Now here is it's one day trading chart.
Now here is how the Call options traded/ closed on the day. Interday the 220 series of Calls almost doubled in price again! This time the volume of trading in the Calls was down about 40% from the previous day as the strenght in the DJIA was somewhat mutted.
Now the trading action in the Calls during the day. It looks the same. Line this chart up with the chart on the previous day!
Let's dissect this time period into even a shorter period of time.
My point is that watching the markets is in part an exercise of looking for chart formations that you feel comfortable trading. With day trading one day charts in conjunction with five day charts is everything. That plus getting a handle on news releases. Now look at Boeing's five day chart.
What's going to happen tomorrow? I never feel comfortable going back to the well for a third time.

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