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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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Monday Morning And 1,000 Contracts Traded On Hertz

I am fishing looking at todays action. Thirty seconds ago the volumes of trading in this series was reported as 4. Now it's 1,004. One thousand contracts could have happened in one ticket. I was watchinng it just before it happened.
$5.00 options can suprise. Here is how they closed the day, up 540%.
So why am I blogging about this event? Well, in a recent past blog the same type of event happened. Check my November 8th blog. Look at the chart that I pulled up from that blog.
When a stock jumps in one day from $5.00 to well over $6.50 and settles back again to $5.00 you know that history could repeat itself. Today was that day. One month from now we could be looking at this same event unfolding again.
Whenever Hertz drops down to $5.00 can you purchase short term option on it looking for one of these situations? Not really. Hertz options are best left for insiders to play.

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