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

To: Torben Noerup Nielsen who wrote (15747)	2/24/1998 12:43:00 AM
From: Proton	Read Replies (1) \| Respond to of 32384

Re: LQPEV (no, its not encoded...) Could you please elaborate on the following: >BTW, the May 12.5 calls are interestingly priced here. I do not know enough about options to understand what you mean. I say things like this to generate replies without resorting to porcine references or light sexual innuendo (although I succumbed to the latter in a post earlier tonight, but I was provoked, I tell you!). :-) One may be able to purchase the May 12.5 calls for 2.75-2.88. The intrinsic value of the calls is 2.13. So one pays 0.62-0.75 time value, a reasonable (perhaps to the low side) premium for options that don't expire for three months. If one believes the prognostications for good news in the next few weeks (one serious if, as the leptin misfire and the LLY deal showed), LQPVE is a good way to play. Like your excellent rollover of LGND to LGNDW in the fives, this may be a way to liberate capital and buying power locked up in LGND common. It doesn't provide the longer-term participation of LGNDW, and there are good reasons to hold on to the common (tax, no concern about decaying time values, full participation in price appreciation). As I said, "interesting," not "exciting," or "wildy undervalued." Of course, Tony T. would probably say the same thing about the May 17.5 puts! :-) Pý