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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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Are Disney Calls Back In The Buy Range?

Here is the chart and the price of one series of it's Calls.
Last week we did a blog about Disney Calls. Now at this time, any kind of an upward swing could cause these Calls to double. Yet it's Tuesday and these Calls don't expire until Friday. For lack of better words these options are sloppy options meaning they are "out-of-the-money" options and somewhat susceptible to falling of a cliff if the stock decides to go sideways or down for a day or two. It's not like buying Tesla on the closing hoping for a ten dollar move on the opening and getting it. That's one of the reasons the volume in them is so low. Now this, nothing much to report on it's Wednesdays opening but they did jump to $1.16.
To be continued.

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