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

To: bluejeans who wrote (17881)	3/25/1998 9:51:00 PM
From: Flagrante Delictu	Read Replies (1) \| Respond to of 32384

bluejens, An increase in open interest implies that new traders have entered the marketplace, or else, that those involved before yesterday increased their positions. The number given is for the number of contracts outstanding, not the number of people holding them. It implies that those with strong opinions are participating. Yesterdays action seemed to show 2 purchases of 84 contracts, one in the Aug. 15 puts, and again in the May 15 puts,offset {possibly} by the sale of 160 May 12.5 puts {I'm not absolutely sure of this,so feel free to correct me,if I'm wrong}. It is possible that this was a spread transaction, initiated by a large player & accommodated by one or more market-makers. One can only guess at the motivation. I presented one hypothesis yesterday, there are several others.E.g., It is possible that the purchase of the 84 May 15 puts at 11/16 was offset by the sale of 160 of the 12.5 puts. It doesn't pay to waste too much time speculating at the motives. Bernie. ]