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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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Options On "One Dollar" Stocks - 0ne Stock In Particular

Kind of a dumb topic however it's real life unfolding as we speak. How is a little marijuana company named Canopy Growth doing and what might change in the companies near term future? Here is a chart of it's stock price. I don't need to ask Ai what the challenges are for a company like this going forward. Here are two or three big ones. A company can't keep going on operating if it keeps losing money. Others in the same industry may be feeling the same pressures. If it also has an overeseas operation which was meant to bring in money and it is not. That's another concern. What are they learning from the experience? Are new opportunities opening up? Once again it's a learning curve for everyone, including even people like watching it from the sidelines. I don't follow it all that closely but it's fair to say they are in challenging times. Now this, a look at it's one dollar Call options that expire in January 2027. That's a long time away.
Why would anyone buy these options? Why not just buy the stock instead? Stocks don't expire, options do. Now look at it's one year chart. What do you see?
I see three spikes up, all induced by Trump talking about the need to change the laws about how marijuanna is classified.
So the question now is what are the odds of another spike upwards sometime this year? If it does and you see these options jump up in price just get out on the spike if you own any of these Call options. (Existing shareholders could be exhausted by this experience). Just get out an ask questions later. To simple a strategy you might say? Perhaps. Let's watch this situation and see how it unfolds. Here is oneother stock which has the same kind of story.
Now for a big cautionary note. I don't own positions in either of these two series. Why? Well one reason is that I can't afford to own everything I like.

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