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Pfizer - Five Day Options Starting On A Monday Morning.

Monday December 29th The DJIA dropped on the opening. Not a massive drop, just like 250 points. So I am looking at Pfizer again, this time to the upside. It's only down $.07. The option volume is healthy which is a good thing. If the markets rebound these options will be super sensitive to a rebound. It's only Monday and these options have all week. By waiting until the afternoon hopefully morning jitters are behind us. Now this, a look at it's five day chart. Charts are important. Now a 2:05 p.m. update. First it's current one day chart and another market update. The markets are still struggling. Now this at 2:09 p.m. Now it's final Monday closing reading. The markets never rebounded. So what next? Pfizer the following morning. These Call options are now "out-of-the-money" and are super sensitive to the stock's lastest two cent drop. Here is it's chart. The open interest in the Puts is now double what it is in the Calls. The nice things ...
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Ford Options On A Monday Morning With The Markets Expected To Open Slightly Lower

This is a simple set up. Can you play the stock Ford on the upside and make any money? There are no earning reports or anything crazy expected to happen this week. Nor are any monthly production level reports expected. What sometimes throws the stock off are recall announcements. It is afterall Ford. That's a wild card. Last week Ford was down two cents on the week and was the fourth most actively traded stock by share volume on the NYSE. Here is it's five day chart.
Now let's look at it's this week's 13 series of Calls and take the perspective of buying a block of twenty-five contracts at one time. That would cost $28.00 times twenty-five. Often we see blocks of 25, 50 and even 100 contracts trade at one time. Here we are ten minutes into the opening markets. Monday mornings are usually not the best of times to be purchasing one week until expiry Calls. Afternoons present better buy in opportunities. That's just the way it usually works.
In past blogs I have referenced watching Ford options move in price is like watching paint dry on a wall. In these somewhat volatile markets that is no longer the case. Bad news already by 9:56 a.m. Ford is off in price.
Can you already feel how this exercise is becoming a waiting game? It's not anything like buying Tesla Calls on a Friday morning where the action can be explosive. There was news at 10:12 a.m. Here it is.
The stock is selling off more.
In reality the benefits of such an arrangement with Amazon will takes many quarters to unfold. Now here is how Ford closed the day. Their Calls sold off half price!
.....
Here is how the DJIA closed.
. It was the Puts that were the star of day. Go figure from looking at the opening chart.
Now here is an interesting chart showing when the action in todays Puts started to kick in. The ride started at 1:00 p.m. mark and ended around 3:00 p.m.
In my blog about Pfizer last Friday, a day the DJIA dropped 797 points in one day the same type of $.10 Put action happened. In that instance the action started at 1:30 p.m. and ended around 3:30 p.m.. Is this trading action a trend on days the markets take a real grubbing? I will continue to comment on this series of Calls for the remainder of the week. Can you see how such a simple blog can suddenly get so complicated? Now Tuesday's action. Look at how look low the Calls traded down to. There was a bit of a rebound in the markets on Tuesday afternoon.
To be continued. Now Wednesday.
On Thursday there was talk of a fire.
***** A look at the action going into Friday morning.
Here is how the stock traded in the last five days.
Things were out of focus. Let's also watch the 12.5 series tomorrow with only one day of trading life left in them. Here they are at 12:24 p.m. on Friday.
Fires don't help the cause.

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