Ampex Corp: Digital Storage Message Board

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Technology Stocks : Ampex Corp: Digital Storage

AMPX 7.887

+0.7%

Dec 31 3:59 PM EST

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To: Ed who wrote (2477)	4/5/1997 7:42:00 PM
From: HPilot	of 3256

Well if the Oct 10's don't work out, which I seriously doubt, then you have more premium from selling the Oct 7 1/2's than lost on the October 10's. So while bullish it is still rather consertive. A less consertive position would be to sell the 5's and buy the 7 1/2's still some down side protection but it is really to get more profit without spending cash you have on hand. Taking it to the extreme would be to buy as many 7 1/2's from the sale of the 5's. Very little down side protection when taken to this extreme, really the downside is breakeven after commissions. But still one hell of a lot less risky compared to buying straight calls! This is known as a bullish backspread and my favorite option stratigy for this stock!

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