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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 the Puts be a more logical bet? Yet then again if it jumps on the morning opening you would miss some of this upside action. So it's a gamble. Let's see what happens. Now this on the opening.
Now a look at it's morning pop.
..
A high of $.52. in less than ninety minutes. Are you now able to better understand how this can be a "love-hate" relatinship?

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