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

To: WTDEC who wrote (19244)	4/17/1998 10:28:00 PM
From: bluejeans	Read Replies (1) \| Respond to of 32384

at the beginning of today 115 April 15 calls, 15 were traded at the beginning of today 59 April 15 puts, 2 trades

To: WTDEC who wrote (19244)	4/17/1998 10:40:00 PM
From: Flagrante Delictu	Read Replies (1) \| Respond to of 32384

WTDEC, Whenever an underlying stock appears( near the close of the market} to have the possibility of closing at or near the strike price, those who are short the at the money options have to worry whether they will be exercised or assigned. If they don't take defensive action before the close, they won't be able to act until Monday's opening, at which time the stock could be sharply higher or lower. The reality is that out of the money calls are occasionally exercised, in the money calls are occasionally not exercised, and out of the money puts occasionally assigned, and in the money puts occasionally unassigned. The decision to exercise or assign, contrary to the belief of the public, should be made based on where one expects the stock to open on Monday, not where it closed on Friday. The Russian Bear had mentioned that he was short the 15 puts expecting that stock would be put to him. His account of what went through his mind as the stock approached 15 near the close might be instructive.