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Biotech / Medical : PFE (Pfizer) How high will it go? -- Ignore unavailable to you. Want to Upgrade?

To: Beverly-Joe who wrote (884)	3/31/1998 7:47:00 PM
From: Jay B	Respond to of 9523

This is a response to Beverly-Joe's comments on why Pfizer options aren't moving at 1:1 or better. What you need to do is look at the delta value which is a measure of how much the option moves in relation to the stock. For example if an option's delta value is 1.0 then for every 1$ move in stock value the option will also move approximately 1$. If delta is 0.5 then for every 1$ increase in stock value the option will rise 0.50 cents. Hope this is helpful. You could ask your broker what Pfizer's delta value is. Some people consider delta values before they buy options and prefer delta values closer to 1.0.

To: Beverly-Joe who wrote (884)	3/31/1998 8:35:00 PM
From: Jerry Olson	Respond to of 9523

Hello Beverly-Joe Nice to see you here on this thread<g>.. While the stock is at 99+ and the May 95;s are IN THE MONEY(ITM), you can readily see a 3+ point time premium built into the option... 4+ ITM & 3+ time premiy...thats the way of options...they will move up 1:1 in price but they will slowly strip out the premy...I always give about 1/2 to 1 for each month of time.... don't worry everything will be ok...if you're a trader then look for a double and say goodbye...I trade options and 100% return on invested dollars is terrific... trust me, if you can get those kinds of returns on all your trades esp. in options it will be a amazing!!!!!!!!!! Good Luck to you, Jerry