Pfizer's action today was truly crushing. After Friday's close of 105 3/16, this morning's opening was delayed due to an order imbalance - on the upside, of course. Opening indications were 107-110, which subsequently moved up to 109-114!

The stock opened at 109, up 3 13/16. The May 105 Call Options which closed Friday at 5, opened at 9 bid, 9 1/2 asked. The May 110's which closed Friday at 3, opened at 5 1/2 bid, 6 asked. On Friday I told you that when stocks go crazy, it seems that they will never let you in. It's great to be right, even at the expense of false modesty. Anyway, I realized I had a tiger by the tail. My Sunday night strategy for Monday was to buy the stock and the May 110 Calls at the opening Monday, hopefully near Friday's close. That was not to be. The market opened lower, which didn't help at all, and the options would not open until after the stock did.

I started by selling a stock that would supply part of my working capital, and then waited until Pfizer opened. When it did open and I was about to place my usual limit order, the stock was moving up, so I placed a market order. When stocks are on the move, you must do that or miss the boat. I then turned my attention to the May 110 Calls which opened at 5 1/2 - 6, and they were now at 7 - 7 3/8!!! As I was placing a limit order, the price moved up again! I then put in a market order, which I hate to do for options, as that is a dealer market and you are at their (non) mercy.

Well, I'm in now, and hopefully strapped in for a real buggy ride. If you didn't get the trading data today, Pfizer opened at 109, the low for the day, went as high as 113 3/4 and closed at 113 3/8 up 8 3/16! I believe there's plenty of upside room, but remember - If you get in and make money it was my idea; if you lose your shirt it was your idea. As always, there are no guarantees. Stay tuned.

The Market Pro - April 20, 1998