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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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Caterpillar Calls On the Last Trading Day Before Easter.

My most recent blog on Lucid was spot on. In this market with 400 point daily rallies playing Call options on stocks in the thirty dollar price range is the name of the game. I would however be remiss if I didn't point out the action in Caterpillar yesterday. Look at it's five day chart and look at how the Call options reacted. What a nice breakout.
I am not going to bore you with all the details however this is how one series of Caterpillar Calls traded on the day. Look at the low of.06 and look at the high $4.00. I have followed stock options for over forty years. This type of action on Caterpillar on a Friday might happen once every five years. Going back two or three years ago when Telsa was enjoying a growth spurt, Friday Call option trading on that stock made many option traders rich. Bear market option trades, something not really currently on our radar can also be super rewarding. People forget that stocks like Deere and Company can also sometimes drop thirty dollars in one day. Happy Easter.

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