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November 20, 2012  Tue 9:10 AM CT

PFE: SEE CHART GET CHAIN FIND STRATEGIES
Pfizer is giving up some of yesterday's gains, but one trader apparently believes that further downside will be limited for the pharmaceutical giant.

optionMONSTER's tracking systems detected the sale of 5,000 June 22 puts this morning, almost all of them going for $0.71 but across several exchanges and in prints of less than 1,000. Open interest in the strike was 4,432 contracts at the start of the session.

PFE is off 0.29 percent to $24.07 today after bouncing off support around $23.50 at the end of last week. But the gains of the last two sessions took the stock only back to where it was a week ago. Shares have been declining from a five-year high of $26.09 set on Oct. 18.

The put selling is a bet that PFE will be above the $22 strike price seven months from now. The trader is willing to buy shares on a pullback if assigned, but at an effective price of $21.29. (See our Education section)
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Timing the Trade

Both break outs and a break downs need to have a couple things happen before it is considered a confirmed break out or break down by technical definition!  The only problem is that in today's market where things move much more quicker than they did just a few years ago, two days could wind up being the majority of the expected movement, if not the whole movement.

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