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

To: Torben Noerup Nielsen who wrote (15769)	2/24/1998 9:46:00 AM
From: Proton	Respond to of 32384

Re Options, etc. This does not sound like the kind of thing I want to play with. From a mathematical point of view, I guess I can understand how to evaluate an option. But just the thought of buying options leave me with a hollow feeling! Makes me nervous. That is precisely how one ought to feel. Options are seductive and dangerous. You mentioned a tax difference. I presume that by that you mean that the loss incurred on an option that expires worthless is deductible off of your regular income since it is an asset that has lost all value? In the case of rolling a stock over to an option, you must pay taxes on gains on the stock you sell (which may make the strategy inferior to holding the common). In the case of option (or other short-term) losses, they can offset capital gains, but they can only offset other income up to $3,000 per year. Pý