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 200.49

-0.9%

10:20 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Glenn D. Rudolph who wrote (29508)	1/6/1998 3:14:00 PM
From: Riskmgmt	Read Replies (1) of 61433

Yes - if the stock closes higher than the strike price on expiration day. But if not, you still have the stock and the call premium and you get to do it again the next month if you wish. By knowing a stock's cyclical movements, it is possible to do this several times without losing the stock. I have done this a few times successfully. Hi Glenn; Still arguing the point for naked puts over covered calls eh? I have written naked puts since we talked about 6 months ago and I like to do both. One thing with the puts, is that, the brokerage requires a margin of approx. 30% of the market value of the stock-at least my broker does and this ties up cash, or, if a margin account, costs the margin interest. On the other hand, writing calls on stock you own, is cash IN and reduces the margin interest. I have not figured it all out to see what this comes out to in dollar terms in a specific stock/call/put example but I'd guess the further out you go in time the bigger the interest factor becomes. Something to think about, I'll leave it to those inclined to know to do the math. BTW enjoy your posts and appreciate your contribution. regards, Ray

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next