<<<<<In general, any numerical delta is a "immediate neighborhood" approximation of the price sensitivity of a derivative instrument to *very small* (in practice, perhaps 1/2 in either direction) changes in the price of the underlying. It is, effectively, the measurement of the slope of a non linear function at a particular point.>>>>>>
OK, let's have a vote here, who else was left blithering after reading this sentence? Around these parts a delta is the place where the river meets the bay and you go to party on a rented houseboat. I get the feeling that you mean something different here....like the difference.
I get the jist of your argument here though Mr. Bear, but it was definitely a sentence that I read over a few times to let it settle in. In my real world, far removed from my days in academia pondering mathmatical formulas and slopes, etc....it has been awhile since I had to think in such terms. I vote that you give the most technical answer and Dan O the most coherent.
As far as Peter Singleton's question regarding the wisdom of really committing oneself to LGND for the long term. I have no problem with the model doing that, however the size of that long term commitment is something we should think about. I think LGND has great long term prospects, even if they have some adverse events along the way. Of course I've thought CMTR has had great long term prospects for years, but now think they couldn't prospect their way out of a paper bag. And I was once caught up in the embarrasment of being sold on CYTO, but luckily sold the CYTO before it sunk into the mire (damn tax bill was good for something after all as it made me sell that junk at $4.50 instead of waiting for the $1 range).
BUT MORE IMPORTANTLY: I actually flew three rockets today! First since last fall. Little weenie kid A engine stuff, but rockets nonetheless. It was kind of a drag though as I was stuck taking my kids with me, I really prefer to go solo and be responsible for only myself. My 6 year old daughter was fine and a pleasure to be with, but my 4 year old terrorist son was a nightmare and if he wasn't running off or trying to, grabbing rockets with wet glue, screaming, resetting all the controls in the van, or otherwise causing grief, he was complaining about the noise with his fingers stuck in his ears. The only redeeming moment was when it was his turn to push the launch button and he was at a loss as to how to do it with both index fingers stuck in their respective ears. But he really wanted to do it as his big sister had done the prior launch. He finally after much coaxing did push the button and then rushed the finger back in place in his ear, just a bit late of course as the particular rocket has a zero delay on electic ignition and a fraction of a second burn time. It will be a few years before I attempt to take him again! Ahhh, the wonders of children. I hate sharing my kid toys with my kids, I'm just selfish that way. Besides, I didn't get a chance to light up anything with real power that would land 1/3 of a mile away where I'd have to walk and search as I knew I just wouldn't get the chance to go looking for it. Did get to see some cool crashes though. Lot's of novice kids (older than mine) who need a rocketman's advice on how to successfully stage engines so you don't end up with a JART aka lawn dart, or how and why to powder a chute so that it will actually open and brake the descent instead of coming down as a crumpled ball. But, half the fun of flying with a club is watching other peoples crashes. Of course, every rocket I currently own is a mass of glue, tape and other crude repairs. I fly the ugliest things on the field, over and over and over again. I'm the quickest epoxy job in the west. Anyway, it was good to be out in the sun burnin' propellent again.
Rocketman out |
