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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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Exxon At The Start Of A Major Move

Here is the chart on Monday morning. Are you attracted to it?
It's Monday at 10:05 a.m.. Here is one series of Call options on Exxon to look at that expire at the end of this week.
The volume of trading on these Calls and the number of open interest contracts is relatively light. Not many traders are getting drawn into this action. Why is it down? It's an oil stock and there is going to be a hundred reasons for this current sentiment of the day. Every day the sentiment changes. Everything good for this stock and eveything bad is stirred into one big pot and the end result is refected in these constantly changing numbers. Down $3.00 in one week. That's a big number. Now here is a look at how Exxon ended up trading on the entire day.
It gets interesting. Here is how Exxon traded on the day. It dipped around 1:00 p.m.
.....
Here is how the options traded on the day.
At 3:25 p.m. they went as high as $1.30. It's Monday. Here now is how these Call options traded on the day. These options are meant to be day traded. Catch a swing and sell out and wait to do it again. Are these strategies to winning? It would be all to easy to say don't hold onto positions overnight. But that's not the case because sometimes that's when some of the best gains take place.
All I can say is expect to be suprised. Daytraders with a habit getting out before closings often end up losing out on some of the biggest gains. Trading Exxon options kind of has a Vegas feel to it and in a way are kind of a distraction. Let me now show you Tuesday's action.
In a way I feel guilty posting this blog because it makes it look all so easy. Look at how little volume of trading there was in these option. Now this, two end of the week charts.
The 112 Calls turned out to be golden. Exxon had one of it's best one week upward moves this year. A comment on it's "volume of trading numbers". They were very low. In a way that tells us that they are not all that important as an indicator as to what might happen next.

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