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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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Eli Lilly - Expect Morning Moves Like This. Also Costco and Carvana

I don't like writing blogs about Eli Lilly. Why? Three reasons. It's option premiums are expensive and the stock makes giant moves. The third reason is that I know next to nothing about Eli Lilly's "day-to-day" operating realities. If I guess wrong, yes I say the word guess and I am not apologizing for using it, it's game over. Look at what happened this morning, a Tuesday. It jumped upwards after the opening and then sold off.
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The Puts traded down to $12.64 on the stock's early morning blip upwards and then nearly doubled in price on the ensuing decline. A second chart here below shows that action better.
Buy the Puts just after the opening and sell them a few minutes later or wait and sell them at lunchtime.
It's not only Eli Lilly that moves like this. Look at Costco today.
It also was up on the opening and then tanked. This series of Puts moved up in price.
Finally Carvana. The same story. Up on the opening and then tanking.
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If you are a repeat viewer to this site you will know that these are three stocks on my radar list. Look at the low volumes of Put trading in these three stocks. Situations like this are difficult to track. Serious option traders should track the activities of these three stocks on one screen and watch how they trade in the first ten or fifteen minutes of the opening markets. If any of them have popped upwards and if it's a Monday, Tuesday or a Wednesday then tune into the possibities of reversals happening. Watch for me to highlight these recurences in future blogs. This is big boy trading and the stakes are high.

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