Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 209.88

+1.6%

3:53 PM EST

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To: Thomas M. who wrote (24044)	11/19/1997 4:12:00 PM
From: vegetarian	of 61433

Looking at ASND price action, it seems that it is not going to be able to cross much above 25. I had thought that the options pressure may push it to just under 30 but looks like it is not going to happen. This action also means that ASND may go down after the expiration to some extent if all that puts can't push the price up. I am thinking os a DEC 25 straddle on ASND since the direction is unclear (buying both DEC 25 calls and puts). Why might such a strategy be a bad idea? comments? One problem I can think of is the option premium, for 1 contract the straddle price would be $450-500 so ASND would need to move at least 5 points on either side to be profitable. But at last option it was 35 now 25 so a 10 point move. What is the probability that ASND will stay between 20-30 range for next expiration?

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