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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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A Scenario For Insider Trading.

I think something suspious happened today but I have no proof. It's what happened to Boeing Calls. First it's one day chart, on a day the D.J.I.A closed down 453 points.
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Can you see the stock spike at 1:18 p.m.? What was that all about?
Why on a Friday afternoon? That is when there are Call options expiring in a few hours. That's when anyone privy to this infornation just prior to it being "hot-off-the-press" would be buying in.
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One could say that this was an anticipated event with teams of employees at Boeing negotiating terms and conditions of this sale. They would be in the know. If you think about it the release of "purchasing news" like this should be limited to happening only when the North American market's are closed. In that way news like this would have more time to be disseminated and a greater number of existing shareholders could plan to use this event as an exit point. Thus the jump in price potentionally would not be that great. But what about situations like airplane crashes, gold mines having tailing ponds burst and factory workers going out on strike? I guess market trading is what it is? It doesn't always seem fair. I especially don't like the timing of Friday afternoons for news releases. It opens the door to insider trading. If this Boeing annoucement was released on a Thursday instead of a Friday the Call options mentioned above would have cost double or triple the price than what they cost on Friday afternoon because of the time value part of the equation. Insiders would have then had to put up more capital to be part of the game. That's the way I see it and a company as large as Boeing should know better. Kelly Ortberg their CEO who makes something like twenty million dollars a year was asleep on the switch on this one. I have traded the option market for almost fifty years. Insider trading in option trading is one of my pet peeves.

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