Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Biotech Valuation -- Ignore unavailable to you. Want to Upgrade?

To: Biomaven who wrote (32879)	11/12/2009 6:23:12 AM
From: IRWIN JAMES FRANKEL	1 Recommendation Respond to of 52153

(OT - BNI) IF call writers deliver cash the naked call write prints money. IF* they settle in cash at values that reflect BRK-A being higher than the top collar and the deliverable is measured off 40% of the BRK-A stock then for each BNI share the call seller pay out $100 plus: for BRK-A at 130,000 = 1.72 for BRK_A at 140,000 = 4.93 for BRK-A at 150,000 = 8.13 One arb firm is estimating close as 2/14/2010. With BRK-A at 101,760 and EV/EBITDA over 24, the naked write at 100 or 105 seems a good risk/reward. ij * Is that what happens for calls expiring AFTER closing of a merger? I suppose you could end up short some BRK and have to cover but that should not be hard. Millions of BRK-B trade every day and after the 50:1 it should be tens of millions of shares trading every day.