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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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Deere Jumped. A Once In A Year Jump. Boy Did It Jump.

If it jumped this much can you purchase a Put $8.69 "out-of-the-money" at 10:09 a.m. shown below that expires tomorrow in the hopes that some of the froth comes out of this stock? How do you jump in to play the downside with any confidence? Is a reversal imminent? It becomes a question of waiting it out to see when it tops out. There are other stocks we can look at for guidance in what to expect. The entire trading community has their eyes on this situation. When G.M. had an earnings report release back about three weeks ago the stock jumped something like four or five dollars and then hung in at that higher level for an extended period of time. Here is a chart showing that situation.
Once Deere stops going up is it going to linger sideways for a while? Probably not. It's not like the company suddenly discovered gold. They make tractors. It's kind of a boring business.
Let's find out. It's now noon.
Suprisingly Caterpillar is not jumping up in sympathy.
Would that give you a reason to be looking at it's Calls? Here is one series that expire tomorrow about $5.00 "out-of-the-money".
Let's see what happens. Now back to Deere again.
These Puts are now $25.95 dollars "out-of-the-money" with the stock up $77.68. At this point the 670 series of Puts look like a bettter space to be in.
It happened. Deere did roll over towards the end of the day.
Now the same Deere 670 Puts.
The last trade of the day was at $18.38 up from trading at $7.38 at 12:56 p.m.. What about Caterpillar which was kind of a dog all day when all of this action was happening? Back at 12:14 p.m. we saw it's 760 Calls trade at $5.48. They closed the day at $6.80. That's not much of a jump for the risk involved.
What's going to happen tomorrow will also be interesting. Company insiders could have lined their pockets on this one. The system at times is not fair. *** Now a line from my Nov. 30th, 2025 blog. Everyone knows that Deere can trade both ways.
Management has learned to keep it's shareholders in the dark.

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