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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 Cracks $1,000.00 Per Share. History In The Making.

How did this stock get this high? What happened to the worries last summer that tariffs rising raw material would crush their bottom line? What happened to the worries that management commented on during their last few quarterly profit reports. Now look at Caterpillars five day chart.
Caterpillar reached the $1,000.00 per share mark for the very first time. Yesterday the stock had a powerful one day surge upwards. Are some people now thinking that the stock could move even higher?. Think about this. Other stocks have also recently reached this threshold. Let's look at a three year chart on Costco to see what it's stock did after reaching the $1,000.00 dollar level for the very first time.
Between January 29th and February 3th in 2024 the stock went from $979.00 to $1,022. Then on February 13th it reached $1,072.00 to only then fall back to $927.00 on March 12th. These are big numbers flying around. Let's move on to Eli Lilly and visit it's "reaching the $1,000.00 per share story".
On November 10th 2025 it's stock was trading at $988.00 and then on November 11th it was at $1,018.00. Then it moved on to hit $1,110.00 on November 24th. So let's now go back to Caterpillar and look at it's 30 day chart and it's one year chart.
Talk about a meteoric upward spike. I might start thinking about playing it for the downside if it jumps another $100.00. I have often mentioned that many option traders have given up on playing Caterpillar Calls because they are so expensive. Only a handful of Call or Put options trade in one day on some series of long and short term options. Here is a look now at how it's $980.00 series of Call options that expire this Friday were trading early Tuesday morning. Caterpillar was down $43.28 in 39 minutes of trading!
To buy in at this point would be a dangerous play on the magical upward bounces some stocks seem to enjoy when they jump to the over $1,000.00 per share price level. I note that option traders at this particular point in time don't seem to have an appetite them. Let's see what happens. Here is how this series of Calls closed out Tuesday.
These Calls will pay off if the stock jumps up and over $1,000.00 any time this week. There are only 53 open Call positions up from 3 open positions earlier in the day. Let's see what happens. A glance at the action at 11:10 a.m. showed no trades. Now Wednesday's action at 11:39 a.m. This time 18 contracts have traded.
The Call options we are watching are now up $6.68. These are exciting times for Caterpillar option traders. There was still life in these Calls at the end of the day.
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A lot can still happen in two trading days. Thursday morning. It jumped.
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Now look a the volume of trading pouring into this series of Puts!
To be continued. The markets can play tricks. Look at how it closed the day. The Calls hit a jackpot.
Here are the Cat Calls we are watching.
Here is how it closed on Friday.
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What a week for Call option holders.

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