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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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3:30 P.M. On A Day the DJIA Is Down Like 700 Points.

So here are four widely followed companies. Let's see how buying two day (Friday) Let's watch the demise of their Call options over the next three days. Trumph is destroying the markets. 1)
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38.000 contracts have traded. 2) Is Boeing.
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3) Is Tesla.
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. Now Apple. This time with a 4:00 p.m. chart.
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Here now is how the indexes closed on the day. The markets remained largely unchanged in the last twenty minutes of trading.
These options are down 28%,63%, 53% and 62%. Let's see what tomorrows opening trading will bring. Now Thursday's closing readings.
Down 68%, 89%, 93% and 53%. In two days the Tesla Calls for example have gone from a high of $10.80 to $.28 cents.
That's what happens when the markets drop 992 points in two days. Friday turned out to be a down day again. Trumps actions are unexplainable. That's the big problem. Option traders, unlike stock traders have the luxury of sitting it out when times get tough.

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