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Why Disney Options At This Point In Time Should Be On Your Radar Screen

Very few option traders trade short term options on Disney. The first two printouts below help to illustrate this point. Look at how low the open interest was last Friday on one series of it's Calls and one series of it's Puts. .. Most traders of these options are focused on making interday trades. The low open interest on both of theses series of options tell us that. Now look at how Disney traded on Friday, the last day of the week. Many of the trades made are AI induced. Reversals happened in the morning for example at exactly at 9:31:00 a.m., 9:33:00 a.m., 9:37:00 a.m., 9:41:00 a.m. and other times all to the second of the minute.That's a big the hint it's Ai trading. Now it's one month chart. Disney is down. Now a five day chart. Here is where it gets interesting. What it shows us is that some one week Put options would have doubled in price on a Monday and some Calls would have doubled in price on a Tuesday and the Puts would have doubled in price on a Wed...
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The Exercise Of Playing Pfizer Options

Last week I posted a blog about buying Pfizer Calls at the very end of a trading session when the DJIA was down 500 points. Options on stocks that are in $25.00 price range are highly leveraged and it doesn't take much of a move in the stocks price to generate a move in the underlying options. That's the logic behind this kind of trade. Today similiar circumstances (a sizeable drop) are brewing with the DJIA index now down in mid morning trading. Could these Call options rebound from an early morning drop?
Here are two series of Call options to follow and Pfizer's current five day chart.
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Let's see what happens. Here is the 25 series of Calls again in the late morning trading.
Now here is how they closed the day.
This series did nothing all day and the DJIA never came back.
Now this on Wednesday morning.
$.25 to $.36. Now more upward movement and look at the buying volume pouring into them.
Notice the jump tp a high of $.52 ** Thursday morning saw a jump to $.63.
Now this at 2:12 p.m.
Here is how they closed the week.
One week options on $25.00 stocks is a dangerous game to play.

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