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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, ...

G.M. A Four Minute Read That Will Make You Smarter. Do You Have Four Minutes?

Well actually it's a six minute read if you also want to read about an interesting dangerous Ford Call trade. Read this. I talks about the big picture. Look a how much money is being tossed around.
Now ford. First it's five day cart.
What happened? Well good news just came out that is being interpreted as being bad news.
Now a look at the Call options that expire tommorrow Dec. 6th and next Friday Dec 13th.
It will be interesting to see how this situation turns out.**Ford dropped in the last minute of the trading session with over 5 million shares getting dumped in the last minute of trading.
Here is how the 10.5 series of Calls with one trading day left in them closed.
Tomorrow will be interesting.

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