OptionsHouse

Options Trading News

July 31, 2013  Wed 2:14 AM CT

PFE: SEE CHART GET CHAIN FIND STRATEGIES
A long-term trade sees little upside for Pfizer.

optionMONSTER systems detected the sale of 23,329 January 2015 30 calls in one print for the bid price of $2.18. The volume was twice the previous open interest, clearly showing that this is a new position.

The options were likely sold against long shares in a covered-call position, given how close the strike is to the stock price, suggesting that the investor anticipates range-bound action. But the trader may actually hope to be forced to sell shares with PFE above $30, allowing him or her to get paid for exiting a long position. (See our Education section)

PFE rose 0.44 percent to $29.67 yesterday. The pharmaceutical giant was off its highs from the morning but still at its best levels since the end of April.

Total option volume in Pfizer topped 287,000 contracts yesterday, 10 times its daily average for the last month.
Share this article with your friends


Related Stories

PFE

Traders see limit to downside in Pfizer

September 2, 2016

Put sellers see a floor in shares of the drug company, which reported bearish quarterly results on Aug. 2 and is down 2 percent in the last month.

OptionsHouse

TRADING WEEKLY OPTIONS

The fastest money in the market
View full report »

Premium Services

Education & Strategy

Using spreads to minimize risk

Last week we discussed the risk vs reward profile of a debit call spread in Wells Fargo (WFC). This week we will run thru the risk vs reward of selling a credit put spread to achieve the same exposure of that debit call spread.

View more education articles »