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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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Exxon. A Dropping Knife or Catching A Dropping Knife

Sometimes you see charts like this and instantaneously one's brain says "I don't like it"
. I get it.
Let's check back later in eighteen minutes to see how many new contracts are added to the count. The stock has dropped another 48 cents. It's trying to predict the bottom of the fall which becomes the million dollar question.
503 new contracts are added.
Now this. Perhaps it was a computer generated program that that purchased a block of 500 Calls. Is that a good thing or a bad thing? Well it might help us in deciding when to jump onboard. Now this at 10:51 a.m.
Tuesday in the new world of playing one week options are a good day to pull off stunts like this. ** Here is how Exxon closed the day.
The falling drop syndrome sometimes works on Exxon but not so much with other stocks.

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