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Technology Stocks : Ampex Corp: Digital Storage
AMPX 9.475+2.5%Jan 9 9:30 AM EST

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To: Ken Holbert, Jr. who wrote (2415)3/26/1997 9:05:00 PM
From: HPilot   of 3256
 
I would suggest that a better option stratigy would be to sell Oct 7 1/2 covered calls and buy the same amount of Oct 10 calls. If the calls expire worthless you keep the premium of the 7 1/2 calls. If the price of the stock is over 10 you will make more money on the 10 calls than you would lose on the sale of the 7 1/2 calls. If the price is between 7 1/2 and 10 you would lose but I would have bought the 7 1/2 calls back before the price got that high!
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