By David Russell, reporter at OptionMonster
NEW YORK -- Traders are looking to make some fast money in Pfizer (PFE) now that the pharmaceutical giant has pulled back to a key support level.
OptionMonster's tracking systems detected unusual activity in the Weekly 29 calls expiring next Friday, Sept. 6, where more than 7,800 contracts were purchased. Volume was almost 12 times higher than the strike's previous open interest, indicating that new positions were initiated. Most of the large blocks fetched 7 cents.
These calls lock in the price where shares can be purchased, letting investors cheaply position for a rally. For instance, a gain of barely 3% by expiration would more than double the value of the contracts.Pfizer shares rose 0.77% to $28.21 on Wednesday and have been consolidating for the last six months. The stock is near the bottom of that range and trying to bounce at its 200-day moving average, which could make some investors think that it's attractive at this level. Total option volume was twice the daily average in the session, with calls outnumbering puts by a bullish 3-to-1 ratio. Russell has no positions in PFE.