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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...

Disney, An Easy Read.

Few traders like trading options on Disney because the stock constantly disappoints. Look at these Calls which expire this Friday.
Options on stocks in the 100 range offer good leverage and Wednesdays at noon mark the "middle-of-the-week" inflection points. Let's see what happens here. These Call options expire on Friday. To be continued. Now this, 36 minutes later.
Is that good enough of a return? $1.05 was the low of the trading action. Now look at this "bid-and-ask" thirty-four minutes later!
Mid week trades like this do happen. ** Here is how Disney closed the week.
Wednesdays sometimes see market reversals. *** Another quick look at a different trading opportunity. This time on April 2nd with the markets closed on the following day for Good Friday.
Options on this stock are something worth following.

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