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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.
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Options Academy: Ron's Risk Calculation--A Real Life Example

It is rare that I get a chance to give a real-life, real-time example in my articles that the readers were not only following but were actually involved in at the time the event is happening. Well, that is where we are right now in our QQQ trade from last week. Let's recap the trade itself.

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