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Suicide Options

Do you want to split hairs, meaning do you want to chase the most miniscule of moves in a stock's price? With the way options are structured on Pfizer you can. Look at this five day chart on Pfizer and look at this particular Call option series. These are the 24 series of Calls that expire this Friday. Why do I think these Calls offer good value? Two reasons, the first being that this stock trades on high volumes. As as of 3:50 p.m. today the stock has traded in excess of 39.6 million shares. I take comfort in this number. With this much volume I would think that the option makers would have less power and less desire to control any short term directional moves that this stock has. The second reason I like these options is that they trade in one dollar increments. I like that. In my blogs about Walmart I mention the same thing. In this case we now have a "Bid" of .22 and an "Ask" .25 with a high on the day of .42. Purchase these options in quanties of 20, 30, ...
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McDonald's And An Earnings Report

I was sitting in the drive through line yesterday at McDonalds redeeming a free coffee sticker won from being there a few days prior. It was a long line up for mid-afternoon. I am not a fast food junkie. I found myself thinking of how the Domino Pizza stock was on a terror for much of last year but not so much now. When we were all locked in last year everyone was ordering their pizza. I was also wondered if they would now accept my little free coffee sticker as it was only thumbnail size. Then when I pulled up to the drive thru window I hit a patch of bees. Apparently for whatever reason they were enjoying being at that window. They gave me my free coffee. Boy it was busy there.
I note in this option series that there were only 292 open contracts. That small number suprises me. Why didn't more option players see this coming?

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