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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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Space Exploration. A New Kid In town To Play Options On. A Stock Set To Build Out The Next Frontier.

Traders are looking at this situation with the eyes of children looking at a big roller coaster. Wouldn't it be fun to try it out at least once? These options are a new kid on the block with not much of a history. Analyst in general are afraid to criticize it. The price of admission looks pretty reasonable as the stock got beat up in the last few days.
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The argument could be made that it's difficult to play a stock with so many moving parts. That argument could also be made about playing Tesla options. Yet it's difficult not to be impressed by the stock's volatiity. Let's see what happens this time. Now here we are one day later at very same period of time of the trading session with the D.J.I.A. down about 550 points.
These Calls still have two days of life left in them. Tesla is feeling the same heat.
Now an end of Thursday readings on these two stocks. First SpaceX.
. Even with the stock up $3.86 on the day the Call options did next to nothing. This is a good example of "time-value-shrinkage" with two days of trading life shrinking into one day. Tesla on the other hand did have a nice jump upwards, upwards that is over $12.00 on the day. It's Call options that expire on Friday did well.
As a general rule I am not a buyer of Call options on mid-week option positions knowing that option premiums can dry up quickly going into Thursday closing markets. Let's see how it all turns out. Tesla suprised and offered opportunties to get out when it was trading over 41-. to get out .
SpaceX, not so much so.
Friday market price jumps on it are less likely to happen on Fridays because traders have not yet discovered what kind of news is needed to make it move.

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