1000 agn per 10,000 pfe
at $27 on PFE AGN is worth 305.1
PFE has downside of 4.6
AGN has downside of 0
PFE has upside of 1.5-2.5
AGN has upside of 70
Buy 1000 shares of AGN
Short 10,000 shares of PFE
PFE goes down to 27 you make $46,000
AGN loses 0
net profit of 46k
PFE goes down to 28 you make $36,000
AGN goes up $12,400
net profit 48,4k
pfe goes down to 29 you make $26,000
AGN goes up $23,700
$49k net profit
PFE goes down to 30 you make 16,000
AGN goes up 35,000
$51k net profit
PFE goes to 31 you make 6k
AGN you make 46,3k
PFE goes up to 35 you lose 34,000
AGN goes to 395 or 91.5k profit
net profit 57k
AGN is trading as if PFE is gong to be $27...
AGN has upside of $70 and downside of $0 if PFE gets to 27...
risk reward is in AGN favor
over the last 45 months FAS has doubled every 14-16 months...
*2... Average monthly % move was 3.86% higher
*3... Average monthly gain was $3.23 per share
*4... 31 up months... 14 down months... out of the last 45 months
Ichahn didnt call for 1150... and Grantham calls for 2250 before any crash... this post is just non sense see you back at $140 ;) get ready for a 2-1 split and maybe you can see single digits after
smart atty... long term these ulta longs/shorts will be worthless as they decay...
that is why they get HUGE reverse stock splits...
look at FAS and FAZ another favorite long term short... free money really
no reason to cover... even long term the value is close to 0... like all ultra ETFs... look they just did a 1-5 reverse...
this is a worthless long term investment like all levered etfs