Ampex Corp: Digital Storage Message Board

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Technology Stocks : Ampex Corp: Digital Storage

AMPX 12.16

-17.3%

2:12 PM EST

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To: Merlin who wrote (2216)	3/10/1997 2:37:00 PM
From: Daniel Schulman	of 3256

I am starting to turn a little short-term bullish. If people remember or are interested I have been fairly neutral short-term since the Maxtor announcement. Of course, I remain extremely bullish long-term. Anyway, what's this means and why I am responding to you, is that today I opened a new position and wrote calls on it. I was able to buy AXC at 6 7/8 and sell the July 7 1/2 calls at 1 3/16 for an effective price of 5 11/16 (minus commissions). I like this strategy over your's in that the money is only tied-up for 4 months, and the effective price is already below support levels. Consequently, I think the covered call is a very safe strategy--the date is after the annuals, settlement (hopefully) of law-suit, etc. So, I am pretty sure I'll be somewhere in the money come expiration time. If I do get called against, I have a maximum return of about $1.81 on a investment of about $5.69 for a return of close to 32% (minus commissions) over only 4 months. In order not to miss any potential great run-up I am maintaining my original long position. Of course I don't really know anything--as has been pointed out previously on this board I am not even qualified to run a lemonade stand.

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