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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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Tesla Calls On A Friday That Expire On Monday

It's the same topic I posted last Friday. Today is Independence Day and the markets are closed. For this reason we can't really talk about mimicking last last Friday's trading. Here is it's five day chart. As you can see Tesla dropped on Thursday.
Here is a look at how one series of Telsa's Puts traded on Thursday.
Now look at the pricing on this one series of "slightly-out-of-the-money" Tesla Calls as of Thursday's close. These Calls would let you be in all of Monday's trading action.
Is the price of $4.60 a contract a fair price? Well consider these two points. One day swings in stocks in general in the $400.00 price range can be significant. This five day chart of Tesla below shows you how it jumped $32.13 last Monday!
The second point is that long weekends (three full days of no market trading) are know to cause market resets. Stocks like Exxon can get whipped around. That's what makes the pricings on all options now so difficult to gauge. Yes it's a given that there is an element of risk in playing short term options. Yet whatever the outcome of this particular situation turns out to be, are you able to see how interesting option trading is? Let's wait and see what happens. It's now Monday morning.
...
Now this.
Getting in on Friday wasn't the best way to play it. Getting in on the morning dip was a better way. Either way, both ways made money. * Now this at 11:37a.m.
Tesla can suprise. Now this just after 1:00 p.m.. When Tesla decides to move it often has smooth rides.
Now it's ending at 4:00. A walk in the park for lucky Tesla Call holders.
Tesla on Monday mornings is something to think about.

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