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A "Love-Hate" Relationship With Pfizer Options

Pfizer options often disappoint however there are times when they can be your best friend. Let me try and explain. First look at it's five day chart. The 24.50 series of Calls have more than doubled in price in two days. Volatile stocks like this in this price range attract an inordinate amount of attention when it comes to option trading and it only flares up during these brief periods when the stock has these extreme price moves. Look at the open interest in this one series of Calls below. It's quite substantial. Now for a simple calculation. If the stock moves up today to $25.00 these $.37 cent options on the 24.50 series of options will probably move up to the $.55 cent range. Buy and sell let's say a block of 25 contracts and you will be rewarded with a nice gain. Now let we share this one observation. Here is a look at how the D.J.I.A. traded yesterday. It was down. Who wants to be holding short term Call options overnight if the markets are souring? Wouldn't t...
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News on Polestar , Lucid (Trading After A Reverse Stock Split) Plus Ford News And Vinfast

Look at the one year chart on Polester.
Now it's one month chart.
What's going on? It's confusing. It was down $.36 cents on the week.
If you want you can spend $.20 or $.25 on Puts and hope that the company goes under in the next five or six months. They recently raised more money by releasing more shares so it's running out of options. You can't run at a loss forever and this news will most likely scare off potential new car buyers.
This actually is a low number of outstanding Put options. The consensus seems to be that it is not game over yet. Lucid started trading this week on a "one-for-ten" reverse stock split. Here is its one week chart. It was down $1.39 on the week.
It's also going to struggle.
Both of these stocks have challenges ahead. On a more positive note here is a chart that looks kind of perky. Ford on the week.
The stock was down $.03 cents on the week and it was the 3th highest in share volume trading on the NYSE. It appears that investors wanted even better news. Could it pop again this week? It might. I like perky stock patterns.
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One week out options on stocks in this price range is one of the most difficult games to play. Hopefully there might be a hangover effect from the release of this good news. "Two-week-out" options are more expensive and paying for time premiums on stock's in this price range is generally a losing proposition. Finally Vinfast. You see these cars on our streets and the company offers ten year warranties.The company is not cash strapped. (90% of their product is absorbed by Vietnamese). Build quality is reported to be poor. They are building a factory in North Carolina which will open in 2028 and they have opened a factory in India building vehicles from kits.
Call options on this company suprised last year. I posted this information in a blog on December 4th 2024.
It's kind of a boring stock to follow however it can suprise.

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