• 
• See all for optionMONSTER
• View Print Version

• Put buyer takes other side of gold trade
• Strategy looks for more gains in HCA

• PFE 94% Rate It

Pfizer is consolidating at a long-term high, and one investor is buying more time for the stock to break out.

optionMONSTER's Heat Seeker monitoring system detected the purchase of about 30,000 October 23 calls for $0.68 and the sale of an equal number of September 23 calls for $0.56. Volume was below open interest in the September options but not the October contracts, which indicates that an existing position was rolled forward by one month.

The move will protect the trader from time decay accelerating in the closer month as expiration approaches. He or she paid $0.12 to make the adjustment. (See our Education section)

PFE rose 0.55 percent to $22.73 on Friday. It rallied about 30 percent between October and late April and has been consolidating in a range since then. The current level was a major area of support between 2004 and 2007, which has now become resistance. If it's broken, some traders may expect a strong rally.

Overall option volume in the pharmaceutical giant was quadruple the daily average in the session, with calls outnumbering puts by more than 8 to 1.

Related Options Articles

• 
  Dow Posts First Weekly Loss Since Mid-April
  5/24/2013 04:26 PM
• 
  Can Ebix Overcome the Rumors?
  5/24/2013 03:17 PM
• 
  Bulls charge into Facebook at lows
  5/24/2013 01:20 PM