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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 $.55 cent range. Buy and sell let's say a block of 25 contracts and you will be rewarded with a nice gain. Now let we share this one observation. Here is a look at how the D.J.I.A. traded yesterday. It was down. Who wants to be holding short term Call options overnight if the markets are souring? Wouldn't t...
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$Caterpillar Calls On A Day The Stock Goes Up $41.00.

Let's start with it's five day chart.
Today is Thursday. Here is what the DJIA did on the day.
Here is what it's "near-to-the-money" Calls did.
What stands out to me? Only 37 contracts traded and an open interest in this series of Calls of 36. This series of Call options expire tomorrow. What about the next week out Call options with the same striking price? How did they trade?
It's unusual to have a higher open interest number. What about the longer term Call options, the ones thae expire near the end of July?.
There is no real interest in them. What about the "near-to-the-money" Puts that expire tomorrow? Once again the action in them is next to nothing.
If the stock gives up half of what it gained today these Puts would triple in value in one day. Now here is Caterpillars "year-to-date" chart.
Holding one day to expiring or one week to expiring Call or Put options on stocks like this in the $900.00 price range attracts little in the way of attention. Will Caterpillar reach $1,000.00 per share?

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