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R.B. OFF TOPIC In order to be fair to your point of view & to possibly find the reason why we, who normally don't seem to disagree on financial matters, do disagree on this one, I note that in the article in Bloomberg Magazine that I posted to Tony, the author says "Volatility is risk." Upon contemplation of that, I believe it is possible that our definitions of "risk" might be different, with yours & his being broader than mine. Specifically, when I consider "risk", my principal concern is whether I can lose more money from transaction A or transaction B. So, I am contemplating "risk" to be risk of capital loss between the 2 choices we were discussing. I noticed you were talking about percentage risk (Using current levels as a baseline, any given percentage move by LGND {in either direction} will result in a greater percentage move in LGNDW) & he, about volatility risk. As long as the transaction I am contemplating can make as many dollars & cannot lose more actual dollars than the alternate choice( & may lose a lot less, & requires a smaller out of pocket outlay, as in LGNDW vs. LGND), I am personally not overly concerned with other concepts of risk, which could include concepts as broad as emotional or psychological risk as well as percentage risk & volatility risk. Perhaps this is the missing link to the puzzle of our differing interpretations of "risk". |
