PFE (Pfizer) How high will it go? Message Board

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Biotech / Medical : PFE (Pfizer) How high will it go?

PFE 25.61

+1.8%

Dec 3 3:59 PM EST

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To: Caroline who wrote (2484)	5/15/1998 1:32:00 AM
From: ratan lal	Read Replies (2) of 9523

Caroline If Pfe > 110 at expiration, then it gets called away and you get to keep BOTH the call and put premiums because the put buyer will not sell the stock to you and the call buyer will buy the stock. If pfe <110 then the call buyer will not buy the stock but the put buyer will sell the stock to you at 110. So you end up with 2 shares at 110 (1 you owned at about 110 and another put to you at 110). Now your profit (or loss) is = 2*(110-price of pfe at exp.)+put premium + call premium. ratan

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