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Chasing Unusual Charts. Pfizer

This stock had an unusual trading pattern last Friday. It is now Monday morning and this weeks option trading will be shortened by one day because of thanksgiving on Thursday. Here is the stock chart I am referring to. $24.50 to $25.50 in one day and now chilling at $25.00. It now has to move one way up or down. How do you decide which way? That's the issue. To buy both the Calls and the Puts means that you are going to get burnt one way. Here are the pricings on both the Puts and the Calls two minutes into the opening trading. The open interest in both the Calls and Puts is next to nothing. One thing is for certain. Traders are soon going to wake up to this action. The spread between the "bid and ask" on both series is $.05. That's not an issue. Lets check in at 9:58 a.m. to see what is happening with both the Calls and the Puts. .............. So what to do? Wait. It's now 10:47 a.m. It's now 11:00 a.m.. If we are going to make a stab at playing the d...
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Cat Calls

The markets opened stronger on a Friday morning and Caterpillar Calls jump over $8.00 in the thirty five minutes of trading. Look at the volume of trading on this series of options. Seven contracts! These are the Puts. What if the opening markets tops out? That volume of trading in the Puts is nothing.
Let's compare that number to the number of Calls on this series of Tesla Calls at the same time in the morning.
7 vs 17,309. Crazy. Why are people so afraid to play Caterpillar Calls when the stock has had such a strong surge as of late? Now let's move forward and look at how these two series of Caterpillar options are trading a few minutes later at 10:35 a.m.. The Calls are up even more which draws are attention to what the Puts are doing.
Notice the wide spread in the "Bid" and "Ask" on the Puts. This indicates that the option market makers are in a particulary vulnerable spot. Now this, the markets have changed. There was Trumph and China tariff news.
Caterpillar dropped.
It's just after 11:00 a.m. and the Puts paid off big time. We saw the Puts at 10:36 a.m. trade at $1.50 with a wide "bid and ask" ($1.25 and $2.63) and someone was lucky to get a fill after that time at $136.00. Now that all of this action has happened I would say it's time to sign off for the week. Here is how Caterpillar was trading at noon.
Here are it's end of day readings.
$1.32 went to $16.50. Not many traders caught this one.

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