Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: squetch who wrote (14318)	2/5/1998 10:17:00 PM
From: Flagrante Delictu	Read Replies (1) \| Respond to of 32384

squetch, The lower you can buy a derivative under theoretical value,the more theoretical profit to be locked in. However, even "theoretical value" is only a mathematical guess which is heavily dependent at times on the assumption that future price action will be somewhat correlated to previous price action. But, in the absence of a better guide, it enables a rational trading philosophy because one can value other derivatives on the same basis & determine their interrelationships as well as their relationship to the underlying instrument, such as in this case, LGND.It is imperfect in that the real theoretical value, currently, can only be known in hindsight when we see what the price of the underlying instrument is on a specific day in the future, usually expiration day, but any day actually. Bernie. Be warned that this is my opinion only & others may be able to launch a reasonable counter opinion.