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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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Pfizer Again. Fast and Quick.

I am back to looking at cheap options again. We have had topsy turvey markets as of the last few days. Are you looking for a cheap position to enter into with instant posible leverage? These Puts were good to buy on the close today.
.......
If the stock declines in price what it gained today these ones will be winners. If not there will still be a few days to see if it drops. Here is it's five day chart.
In the premarkets (today is a Wednesday) it is down a touch.
Now this.
Now this Puts at 10:12 a.m.
Here now is what the markets and these Puts are doing around 11:12 a.m.
In my usual fashion I would say just take the profits and run. Profits like this can dissipate in the blink of an eye. I don't want to worry about what the stock will do next. I am just happy the markets went in the right direction for me.
This trade required Pfizer to drop $.34 cents in a short period of time. It did. The charts this morning looked like it could.
Here is how Pfizer closed the day. The stock kept sliding into the mid afernoon. Other Puts also offered this same kind of experience.
*** Just for the record here is how these same Puts were trading going into Friday morning.
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