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Exxon Drops Big On A Late Monday Morning

Is now a time for a reversal? When Exxon drops like this on a Monday morning it has the weight of the world's problems on it's shoulders. If it dropped double this amount you would know something is actually wrong. Here is it's five and one day charts. So anyone could recognize this. Why pick this time to look for a reversal? What happened to the support level at $118.00? Does the $118.00 level look like a stretch to far away? Now this. We are hoping for a pause in the downward action and hopefully a slight rebound. A rebound to $118.00 would work wonders. Here is it's 11:39 a.m. readout. A further deterioration downwards would be ugly but these Calls don't expire until Friday. The low volume of trading tells us that experienced option traders are not looking for any sort of a quick rebound. Let's see how this plays itself out. Now this, a 2:00 p.m. readout. Now a 4:00 p.m. readout. It took until noon to shake off the weekend sentiment but after that a rebou...
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Suicide Options

Do you want to split hairs, meaning do you want to chase the most miniscule of moves in a stock's price? With the way options are structured on Pfizer you can. Look at this five day chart on Pfizer and look at this particular Call option series.
These are the 24 series of Calls that expire this Friday. Why do I think these Calls offer good value? Two reasons, the first being that this stock trades on high volumes. As as of 3:50 p.m. today the stock has traded in excess of 39.6 million shares. I take comfort in this number. With this much volume I would think that the option makers would have less power and less desire to control any short term directional moves that this stock has. The second reason I like these options is that they trade in one dollar increments. I like that. In my blogs about Walmart I mention the same thing. In this case we now have a "Bid" of .22 and an "Ask" .25 with a high on the day of .42. Purchase these options in quanties of 20, 30, 40 or whatever you want. The tiniest of an updraft will send these options soaring. Well not crazy soaring but on a percentage basis noticably large move. Let's see what happens. It is expected that tomorrow will see news of an interest rate drop. That should help the markets. Here is how they closed the day which is twenty five minutes after we first clued into this situation.
Ten contracts at .23 would be $230.00 and a jump to .43 would make them worth $430.00. Trades like this up and down could theorically be done multiple times in a one week period of time. I note that 730 contracts traded in the last 25 minutes of today's trading which means that about 29 contracts traded per minute.That's good liquity.
Let's check in tomorrow to see what has transpired. Once again these are suicide options because it is all to easy to get caught going the wrong way. Pfizer was down seven cents on the day. Now here we are six minutes into Wednesdays trading action.
It's up. Here is the move you need to make a profit and move on to something else. Middle of the week timing works work best for these kind of trades. Now it's 9:47 a.m. reading.
The results of this trade are about as good as it gets.
Here is how these Calls closed the day.

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