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

To: Machaon who wrote (19232)	4/17/1998 10:17:00 PM
From: WTDEC	Read Replies (2) \| Respond to of 32384

Bob, You make a point worth exploring in some depth. Russian Bear, Bernie and/or Celeryroot may know or can get the open interest on the puts and calls which expired today to see what the economic consequences were to the 15.25 close. I don't know where to get that. I did look at the 5 minute Big Chart and note there was very strong volume in the last 10 minutes, but the price level had started steadily upwards at about 2PM and was over $15 before the big volume kicked in. I don't know how much of the volume at the end was option related--maybe all of it. Bernie, what is your view here? Walter

To: Machaon who wrote (19232)	4/17/1998 11:31:00 PM
From: Russian Bear	Read Replies (2) \| Respond to of 32384

Robert, Today's move, I am very confident, was not options-related. The open interest in LQPDC, the April 15 calls, was only 115 contracts, representing a mere 11,500 shares. Today's volume was just 15. Theoretically, it would have been in the interests of the holder(s) of the calls to bid LGND up over the strike towards the end of the day... but attempting that would have been completely impractical, today. The open interest in LQPPC, the April 15 puts, was just 59 contracts (the equivalent of 5900 shares,) and only 2 traded today. I doubt that those short the puts engaged in a late-day buying spree to protect their exposure. In fact, I can almost guarantee that this did not happen, as my personal short position represented the bulk of the open interest. For the record, let me assure everyone that I did not buy multiple round lots of stock, in an effort to avoid being assigned 4000 shares. ;-) All considered, we have to conclude that today's rally was "real," not expiration-related. Woo-hoo! It looks as though I am going to have a nice Easter, after all! ;-) Regards, RB