Ascend Communications (ASND) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ascend Communications (ASND)

ASND 205.50

-1.5%

Dec 5 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Five2Mil who wrote (28897)	12/30/1997 3:02:00 PM
From: Inga	Read Replies (1) of 61433

Would you please tell me your reason why you purchased the Mar 35 call since it is way out of the money. You take a very high-risk gamble if you purchase options simply by hoping/guessing that ASND stock price is going up to or above 30. I purchased Mar 30 call when the stock price is around 26-27 to protect my short position at 26-27 since I expect the price to fall. The options contract covers twice the number of shares I am shorting. If I am right, my short position makes money. If I am wrong and the stock jumps, I will wait until it gets above 30 to cover. The losses by the short are offset by half of the options contract, the other half makes money since the stock price appreciates. You must trade to recover the original premium during the life of the contract. I find this strategy starting to work well for me since I made the mistake INVESTING in ASND early in the summer. Trading ASND this way helps me recover my losses fast. Remember to buy MAR 20 or MAR 25 put to protect your trading shares when you long ASND at low-priced range at 22-23. You never know, if this dog drops to 15, the put protects your trading shares and also makes money. Good luck.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next