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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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Carvana Again. It's Mid Week And Will It Get Nervous again?

What do we see here? Carvana is up $12.00 in the first hour of trading.
It's 10:27 a.m. and these Puts are like $10.00 "out-of-the-money". There is support at the 310 price level. Carvana is known to do crazy things. Might there be an afternoon gain to be had here? Let's see what happens. It's 11:32 a.m. and there has being a slight drop. Here is the chart.
In my usual fashion I would say just get out. $4.70 to $7.20 in just over one hour.
Now it's updated five day chart.
Who cares what happens next? *** With less than 30 minutes in the trading session the same opportunity with the same series of 320 Puts has presented itself again.
......
There is one diffence. It's missing the early morning "up-to-quickly-surge" it had this morning. For that reason alone everything is different! Here is how Carvana closed out the week.
Anyone bold enough to buy into these "out-of-money" Puts in the morning on Friday at their lows of the day were well rewarded.
It's easier to write about this kind of stuff after it happens than before it happens.

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