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

To: Ally who wrote (2488)	5/15/1998 12:36:00 PM
From: ratan lal	Read Replies (3) \| Respond to of 9523

Denise You are absolutely right. I am bullish on PFE. But I was looking for maximum return on the options rather than keeping the stock. Of course your suggestion of selling 120 call works better if the stock goes up beyond 115 since I could sell the stock and make more than the call money I give up by selling 120 instead of the 110 strike. The thinking behind the trade was quite simple. Buy PFE at 110 (now at 107 1/4) Sell CC at 14 Sell Put at 12 Total return 26000 on a 1000 shares (invest 55000 on margin) in 7 months if PFE >=110. Thats a 47% return in 7 months Only danger - PFE goes below 96. You end up with 2000 shares at 110. ratan