Options Insight: Unusual Activities on The Dow

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Aug. 27 (Bloomberg) -- Barchart Bulls-Eye Options Chief Options Strategist Alan Knuckman discusses his options strategy for Pfizer with Julie Hyman on “Market Makers.” (Source: Bloomberg)

Things to record lows.

Joining me is the chief options strategist at bar chart bowls -- bar chart old i options.

As we watch the market action today, you are watching options on the dow.

It's up 3%, so it has lagged behind.

Targeted to move about 5% higher from where we are now all stop there are some dow laggards.

The ge stock yesterday had a big move in options where they saw 21,500 september calls.

That has a breakeven of about 2.5% higher.

If someone is alleged on ge, even though the stock is down 7% come in the worst-performing dow stock.

I want to turn to pfizer.

Deutsche bank raising the stock to a by, rating it a new by, one day after they announced they were teaming up with work on a lung cancer study.

Are we seeing some bullishness there when it comes to pfizer?

Else care has already done very well this year.

But pfizer has not.

5% year to date, there are still 10 stocks in the dow 30 that are negative on the year.

Pfizer is a good value.

People were looking at the 30 calls today.

The more novice trader buys those -- a professional does not buy a 3000 lot unless they have a good idea the stock is going up.

Look for pfizer to get up above that 30 level, so that's a strong indication may be a bottom is in play.

I am curious -- pfizer is one of the stocks or health care more broadly are some of the stocks that tend to underperform after rates start to go up.

But this is a shorter-term call that maybe doesn't take that into account?

I think that is in the near term those front dated options.

I like pfizer in the big picture and i'm looking at the march and april options.

I think it has more upside potential than a lot of the bio stocks but they could sell off

This text has been automatically generated. It may not be 100% accurate.


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