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Opportunities Presented by Options on $30.00 Stocks.

Let's start with this chart. It's Pfizer. Would you have expected a pop like this, this morning? Now look at what the Call options did. I don't want to get into a discussion of "Can you read charts" however after one nice rally yesterday and second follow up rally could be expected. The 29.50 series of Calls doubled on a strong opening this morning. "Out-of-the-money" Calls on stocks in the thirty dollar price range call sometimes suprise.
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Ford, Deere, Home Depot and Lowe's

Will Ford jump again this week? Here is how the stock Ford looks in the premarkets Sunday night followed by how Ford traded on Friday January 7th.
Will it jump up again this week? Here is it's five day chart and here is a look at the Ford 24.5 Calls which expire this coming Friday.
My answer is yes I think it will move up again this week however I am not a fan of purchasing Call options on Mondays on options which expire at the end of the week. So no, I wouldn't be trying to buy in on Monday's opening. I might be wrong but that's the way I think. What will I be watching this week? Deere on the downside. Look what it did last week.
Lowe's and Home Depot had bad days last week just as analyst were in the process of upgraded both of these stocks.
Look at how low the volumes were in these two Put series last Friday. Trying to play them now either way is a bit of a trap. Earning reports will be coming out and retail stocks are now difficult to play. ** Scroll up to the top left and press the three line icon to read my previous blog on electric cars.

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