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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 and Livewire

So Caterpillar had a fantastic earnings report two days ago and the stock tanked $16.00. Go figure. Read my previous blog. Here is how the stock is rebounding back up again.
In a recent blog I wrote about "out-of-the-money" Calls on Livewire. I showed what the April 2024 7.5 Calls were trading at.
Given that they are thinly traded one would of had to purchase them by offering close to the asking price. Now read this recent news, Livewire is lowering their prices.
How can a company losing money cut their prices? How can a company losing money have their share price go up? Good questions? Maybe their EV motorcycles were just to expensive to begin with.
Now here is how the 7.5 Calls for April 2024 I talked about on Oct 21st are now trading at.
They are now "in-the-money" by $2.64. Everyone missed the boat on this one. I also note that the 12.5 Calls for April have now attracted some attention.
Trading in options that expire five months out on stocks in the $8.00- $10.00 range can be an extremely lucrative adventure.

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