Pfizer (PFE) is one of the biggest pharmaceutical names in the world, boasting a market cap of more than $214 billion. After absorbing some very big acquisitions over the years, Pfizer became a stodgy old company whose returns barely kept pace with the market. But perhaps those days are behind Pfizer, and the excitement over new drug approvals across different areas of medicine might become new revenue generators. And of course, they always have Viagra to help give sales a nice “pop.”
As we look to the chart and technicals, the price action has been very positive since the fall, with the stock moving up a strong 35% since the lows just six months before. What has caught my interest, 
however, is the option flow, specifically some big money coming after various call strikes. Flow is the volume that comes after options, either puts or calls. In this case we have discovered some sizable trades in weekly and monthly strikes. This was not happenstance – this has been persistent for days and weeks. Some institutions are very serious about building a position in the name – they are waiting for a big payday.
The chart shows a series of higher highs and higher lows with strong stock turnover. Pfizer is up 15% YTD, and it is on pace for a very solid 2015, though we know that pace likely won’t continue. Regardless, the strongest names get the money flow, and Pfizer is surely in that camp.
Here at Explosive Options, we bought some calls on March 23 for the May 34 strike.
Pfizer Chart Analysis
Take a deeper dive into the chart action and learn how to read the technicals as I walk you through the Pfizer stock (NYSE: PFE) and my analysis as mark up our chart of the week.
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