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Technology Stocks : Ascend Communications (ASND)
ASND 196.81-4.9%Dec 9 3:59 PM EST
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To: pass pass who wrote (24438)11/22/1997 9:28:00 PM
From: Harry Ehrlich   of 61433
 
I guess it would work with leaps, but I'm not sure about the delta. I know that in the money calls move dollar for dollar with the stock. You would have to work through the numbers. Also, you limit your upside with this method, as the calls you sell work against you as the stock goes above breakeven. This is basically an easier (cheaper) way to get even from a drawdown position, but with limited upside. The article is worth studying, as is the rest of the magazine.

Harry
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