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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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A Perfect Storm - McDonalds

Here is McDonalds one day trading chart on Friday March 15th. The DJI was down 190 points on the day.
That's nothing crazy unusual right? Yet there was news last week of a technical glitch.
On Friday morning things seemed to be normal until some sellers decided it was time to get out. Watch how these "out-of-the-money" Puts sold off down to $.02 ($2.00 a contract) in very early morning trading.
Some traders would have got very lucky. Friday mornings are the only time of the week option trading like this can happen.

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