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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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Playing Eli Lilly Calls On A Thursday.

Here is it's chart. Look at the extreme one day price movements.
Here are what the indexes are doing at 11:10 a.m..
Now the Eli Lilly Calls twelve dollars "out-of-the-money" with one day to go.
Now this, an end of day report.
Now it's five day chart including today's action.
To be continued. There is still reason to be optimistic. Now this in Friday's premarket.
Friday was a suprise. The 140 Calls turned into a suprise. Very few traders had the guts to play them. This happened.
Eli Lilly often suprises. Jumping in on Wednesday on the downside or jumping in on Friday morning was the way to play it. *** Can you play options on Eli Lilly up and down? They are expensive however as of late they have had huge price swings. Looking for opening market reversals is one way to play them.

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