Pfizer (PFE) is up 3.2 percent to $27.69 and the best gainer in the Dow Jones Industrial Average through midday Tuesday after the drug-maker reported better-than-expected EPS and revenue numbers for the fourth qurater. Early options trades on the stock included a 24,500-contract block of March 28 calls for 17 cents per contract on ISE. A customer bought the calls, to open, according to ISEE data. More recently, 10,000 of the same contract traded for 29 cents when the market was 27 to 29 cents. More than 42,000 PFE March 28 calls now traded, making it the most actively equity options contract du jour, against 9,870 in open interest. But, it doesn’t end there. In fact, the ten most actives in PFE today are call options and total volume is very lopsided, as 125K calls and 16K puts traded on the ticker. Lastly, implied volatility is down 10 percent and, at only 14, is in the 20th percentile of the 52-week range — 12.5 to 22.5.
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Frederic Ruffy is a well-known trader, writer, and strategist who has spent years educating investors and creating intelligent, insightful, unbiased market observations that are frequently cited by the Wall Street Journal and other financial publications. As senior analyst, Fred provides frequent and regular notes and daily updates for activity of interest.