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Pfizer - Five Day Options Starting On A Monday Morning.

Monday December 29th The DJIA dropped on the opening. Not a massive drop, just like 250 points. So I am looking at Pfizer again, this time to the upside. It's only down $.07. The option volume is healthy which is a good thing. If the markets rebound these options will be super sensitive to a rebound. It's only Monday and these options have all week. By waiting until the afternoon hopefully morning jitters are behind us. Now this, a look at it's five day chart. Charts are important. Now a 2:05 p.m. update. First it's current one day chart and another market update. The markets are still struggling. Now this at 2:09 p.m. Now it's final Monday closing reading. The markets never rebounded. So what next? Pfizer the following morning. These Call options are now "out-of-the-money" and are super sensitive to the stock's lastest two cent drop. Here is it's chart. The open interest in the Puts is now double what it is in the Calls. The nice things ...
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A Follow Up To A Recent Blog I Did About Playing Two Week Options

Let's begin by saying I am not a big fan of buying "two-week-out" options. Yes they cost a touch more than "one-week-out" options however that is not the reason why. I like thirty day out options and one year out options and Monday, Wednesday and Friday "one- day-options" better. So what's the matter with "two-week-out" options? Here is my answer. Back on January 6th we looked at the Interactive Brokers Group 180 series of Calls that expire on January 17th. At that time they were trading at $4.90 a contract. Here is a look at that printout I posted.
Now this, a Friday January 10th printout. The DJIA closed down over six hundred points on the day.
So here we are at the end of the week and we have for lack of a better word, wasted four days or almost half the life of these options. But wait. Can you see how they where down 47.66% on the day? That means on the previous closing session they were trading at $6.25 per contract. (It's a brokerage company so it's obvious it's going to drop on a day the market has a big sell off). Now a look at it's five day chart.
Imagine buying Puts on it on the morning rally on Tuesday morning and getting out at a huge profit minutes later at about 10:30 a.m. If you follow the charts wouldn't you recognize that could happen? If you answer yes then why do you need to clutter up your mind with "two-week-out" options. I say this because I feel more secure playing five, three or one day options than I do playing "two-week-out-options". Yet that's only me. ** Yes there was a decent profit to be had on the "two-week-out" options preceding Fridays precipice slide but that's another part on the "two-week-out" option holding syndrome. The urgency to take profits isn't there compared to playing shorter term options. ** How did these 185 Calls end up trading on January 17th?
Bottom line. The options on this stock are more interesting than most.

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