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Technology Stocks : Ascend Communications (ASND)
ASND 208.64-2.0%Jan 8 3:59 PM EST

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To: Alec Epting who wrote (9337)8/20/1997 7:32:00 PM
From: Ajay Nandanwar   of 61433
 
What do you think about spreads: one I like: buy March 45, sell Dec 60: 8 bucks spread. If they get called: you get 15 bucks + some time premium on March calls (you can always close the position right before close on Dec options expiration day). that's around 100% in around 4 months. If they don't get called, and ASND stayes where it is today, you get your money back because of time premium. Any positive move between 45 to 60, you make money. The thing I like is time premium decays much faster on December calls than on March calls.
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