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

To: celeryroot.com who wrote (17527)	3/17/1998 11:09:00 AM
From: Flagrante Delictu	Respond to of 32384

Celeryroot, Most market makers are net sellers of options. They probably hedge with the stock or warrants. Many just sell 'em naked & resort to prayer for protection. This usually works for a substantial period of time. Then, the ambulances have to be summoned to try resuscitation before burial. The principal reasons they are option sellers are: 1] because they can. Their margin requirements are much more favorable than those for the public. 2] because they tend to be averse to the risk of stock price movement & prefer to concentrate on making the spread between bid & asked ,by rapid trading in the most active contracts; and, also, by trying to collect time value contraction in out of the money options. Somewhat like male Great Danes, that do certain things that many of us are incapable of accomplishing.Bernie