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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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Walmart - Trying To Outsmart The System

I don't know if it is going to work. Buying a Call and an offsetting Put on the same stock with the same striking price with two days of trading life left in them.
The logic is to sell one of the two if it gets a double or more, (hang on as long as you can), and reaccess the situation after that. Look at this five day chart and you might see how this train of thought develops. Now a look at one Call series and one Put series. These options both have two full days of trading life left in them.
Here is it's five day chart which looks like it might break out.
It really takes a share price move of over $2.00 quickly, to make this a fun experience. Options priced in the $1.00 range can suprise. It also could be a total bust. Let's follow this action and see how it all plays out.Thursday morning. Here is the early morning action.
The Puts really performed. Can you sell out of both postions and take a profit. Hold that thought. Might it go lower? Here is how it closed out the day. This might suprise you.
Consider this. You can't really play it on both sides. In this case your cost in is $1.10 and $1.02 for a total cost of $2.12 and your price out is $2.85 plus what the Call are now worth so their isn't much of a profit for the risk involved. Just buying a Put was the way to make the most money. Now let's see what happens tomorrow. Do you see yourself navigating in these kinds of markets? Here is how it closed on Friday.
At 3:00 p.m. on Friday when the options expired the stock was trading at $115.96.
Holding the Puts until the very end was the way to go. Look at Walmart on any Wednesday and decide if this is a stock to use in your bag of tricks.

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