Pfizer (PFE) Call Spreads and Playing the Calendar

Chris McKhann of OptionMonster A huge call spread dominates today's option trading in Pfizer (NYSE:PFE), which pushed to a new 52-week morning trading, and continues to rise as the trading session goes on.

PFE is up 1.93 percent on the day to $19.57, as of 12:22 PM EST, continuing its run higher since hitting $14 in July. The current level represents a resistance area that has been tested three times since the middle of 2008.

We already see 67,000 options trade in the pharmaceutical company this morning, with calls outpacing puts by 9 to 1. Most of this volume is in a call calendar spread.

A trader bought 21,000 May 21 calls for $0.23 and sold 21,000 April 21 calls for $0.09. The volume at both strikes was more than four times the previous open interest.




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