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

To: bluejeans who wrote (19312)	4/18/1998 1:42:00 PM
From: tuck	Read Replies (2) \| Respond to of 32384

Bob, It is still working. I finished legging in by selling the puts when LGND was ~ 15 1/2, giving me roughly 70% of the difference between strikes as a credit (meaning I must have 30% of that in my account). Not bad, but clearly not the best I could have done, given the recent trip below 15. They are May puts. I protected while I was legging in by buying a 17.5 call. Should I start showing a profit on that call, say by a quick spurt to 16, I would sell it and use the proceeds to buy a cheap protective put. The best scenario would be for LGND to stay over 17.5 on 5/15. Just one brokerage house putting out a new strong buy should do it, IMHO. Right now, I'm showing a slight paper loss, and my breakeven is in the low to middle 16s. Without going into dollar amounts, I will keep y'all posted. Given my history playing options on this stock, I am still nervous. Sell-offs on news that I was trying to capitalize on have hurt me. This time I am trying to cash in on the buying in anticipation of news. Wish me luck; even my peanut butter supply is getting low. I think Friday's action near the close may have been catalyzed by expiration action, but it is hard to know unless one has been following all the options plays for the month with Level II, and as RB and others have stated, it was not large enough to account for the whole move. Thus I agree that the rally seems bullish. Did anyone note the size of the trades at this time? I was away from my desk at the close. Regards, Tuck