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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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Why I Don't Like Trading Options On McDonald's

Same stores sales are up 6.8% in Q4 2025. With inflation and rising labour and food costs, 6.8% is not really very much. Then the rumours about 2,000 or so more outlets opening up this year are the same projections that we heard over the last few years. What they always forget to tell us is the number of their restaurants shutting down. Why might some be shutting down? Well maybe a new highway going is diverting some of the road traffic off in a different direction or a neighbouring high school is closing down. Four years ago they lost some restaurants in Russia. Now look at this.
Next this.
McDonald's trading on the close back on Thursday. It had a good day. There is new talk about a bigger and better "Big Arch" meal with a bigger burger with a better tangy and creamy sauce. Now this.
Today's one day chart. It's Monday. Now it's one day of Call option trading.
Look at the volume of trading on these Call options. Over 6,000 contracts. The open interest in these series on the previous day was only 315. This I think was "Covered-Call-Selling" meaning instituational trader's honing in on the markets and seeing weakness in the markets. Selling the Calls on the stock's somewhat strong opening and buying them back for slightly lessor amounts of money as the day progressed. Buying Puts would have accomplished the same thing however selling Calls against stocks you already hold is an equally convient way to make it happen. Now let us wait and see what the open interest numbers are on tomorrow's opening. If the numbers are low that's exactly what happened.
Now this on Tuesday morning one hour into the trading session. Look at the trading in this same series of options. Only one option contract has traded.
The market's option bandits are off to other adventures never to look back again. Going forward two days, look at how this action has subsided.

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