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Biotech / Medical : Ligand (LGND) Breakout!
LGND 191.75+1.0%3:59 PM EST

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To: Josh C. Pleasure, M.D. who wrote (3569)6/17/1997 1:58:00 AM
From: Andrew H   of 32384
 
Well, I guess deep in the money calls are ok, but they are a bit risky for my blood. The November calls give you about 5 months. While I believe LGND will be higher in 5 months, I am not nearly as certain as I am that it will be higher in the 3 years the warrants give me. I don't mind paying an extra 75 cents or so for that reduced risk. Plus the warrants allow tax benefits that the options don't (assuming Congress gets the cap gains tax together). And you can't margin the options.
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