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

To: WTDEC who wrote (14332)	2/6/1998 2:51:00 AM
From: Stewart Whitman	Read Replies (1) \| Respond to of 32384

Actually, it probably would be a good thing for people discussing this issue to take a look at this site: contingencyanalysis.com contingencyanalysis.com Especially try to understand the "risk neutral" valuation that is part of the basis for option-pricing models and the other Black-Scholes assumptions. In the case of buying on margin, you're starting to deal with risk management - in this case the probability of your portfolio value falling below a certain level. There's certainly a valid question of what the volatility in combination with margin obligations means to the risk management of your portfolio, but, whether you buy on margin or not, the volatility and values of the option & stock are independent from your buying on margin. Stew