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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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Exxon On A Major One Day Dip. Will Trumph In His Usual Way Add To The Confusion After The Market Closes? That's The Bet

It's Wednesday and Exxon has had its's biggest dip on the day in a long time. The DJIA is up.
Here is it's chart as of 1:27 p.m.
Now it's Calls that expire tomorrow.
The trading volume on these contracts is relatively light. Retired U.S. Generals are coming forth and saying Trump has no strategy and just wait until more soldiers get killed. Yet four hours ago and three and two hours ago Exxon was trading at higher prices. Why now? Why an interest in looking for a rebound? Chevron is also down over $11.00. Let's also look at it's Calls.
This time we are looking at Call options $2.00 or so "out-of-the-money".
These are both high risk trades. Picking a bottom is never an exact science. Let's see what happens. Now this around 2:25 p.m.. Notice a slight rebound in both of these stocks.
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To be continued. This new situation might keep you up all night. A late night report might help. Here is one.
Let's see what happens.
Now for the Thursday morning jump.
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With the markets being closed tomorrow for Good Friday and with troops in boats rushing over to do combat a jump like this on this morning makes sense. **** Things change. Look at how it is now trading at 11:06 a.m.

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