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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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Can You Play Exxon Crashing On The Opening? The Quick Answer Is Yes.

Here is it's five day chart. I have talked about these options before. Exxon drops on the opening.
The Puts going into the trading session obviously did well.
Is it time to buy the Calls for a rebound? Here are two series to look at. Only one contract traded in the first five minutes of trading. That tells us traders do not see this as being an amazing opportunity. It also shows us that experienced option traders have taught themselves to wait before they attempt to participate in any kind of a rebound. That's what you have to teach yourself to do.
.......
Does this change at the 15 minute into the market time period?
I can't tell for sure however it looks like someone may have bought a block of 50 contracts in the 116 series of Calls.
Here we are at 10:00 a.m. Could this be the bottom?
Now here we are at 12:22 p.m. Happy times are here again.
The 115 series of Calls which were trading for $1.87 at 9:46 a.m. now at 12:22 p.m have moved upwards to $2.70. The 116 series of Calls were trading at $1.30. at 9:47 a.m. and they are now trading at "bid" $1.90 and "ask" $2.06. The real question is what time in the morning did these Calls hit their lows. Here is the answer. The answer is 9:55 a.m.
Jumping in to early in the morning is obviously a mistake but guessing the exact low of the mornings trading activity is nothing more than a guess. Might any of these trading situations help you in your future decision makings? Like with Pfizer and Carvana I have blogged about this morning I just would take my profits and run away, even if that ends up proving to be a poor exit point. The stock did get softer in price towards the end of the day.
Other postings I have made about trading Exxon mimic this same theme.

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