> (rather high) bid-ask spread on LGNDW twice, once to enter at 6 (not 5.625) and
> again to exit at 6.75 (not 7.)
Re: bid-ask spread -- another reason not to buy LDNDW.
My model bought at the ask and sold at the bid.
I'm suprised that you have a problem with this.
I still need you to confirm what % your broker gives you to margin LGNDW, 50% or 30%. (Must be 30% since 50% conveniently meets your purpose)
> (highly artificial) example
Highly artificial? If you try to sell at the ask (as bernie suggests), it is.
> The warrants are not as liquid as the stock. That is a given.
> Therefore, they makean inferior trading vehicleOur "long term
> investor" is not a trader, right?
Well, you keep referring to Bernie, who has told us he trades LGNDW, and you keep saying that B-S is the right pricing model, so it seems you think that Our "long term investor" is a trader.
Anyway, for both trader and LT Investor, you must use the ask to buy and the bid to sell.
BTW, my model was based at the time when bernie requested that I post my proof, you are now trying to make your case by using the previous days price since it conveniently meets your purpose. |
