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: HPilot who wrote (2487)	4/6/1997 1:10:00 AM
From: Ed	of 3256

Wow! Such an awesome strategy. Especially with AXC at these levels. I'm going to put some numbers together WRT the 5's and 7.5's, then look up my broker's (Lombard's) equity requirements, and send you back a "sample position" for your review. Just to see if I understand the intricacies of your bullish backspread. While I'm doing this, would you expand on how such a strategy works to your benefit while you're ALSO long the underlying stock? Also, I'm not sure I understand WHY I would look for the stock price to be closer to the strike price (eg, $5 for AXC). This would seem to reduce the premium received (to just time and volatility) and therefore provide less $$$ for purchasing the 7.5's (which would, correspondingly, have a smaller premium). Steer me in the right direction if I'm missing something here. Thanks for the info. Let me know how you've done on some previous positions using this strategy.

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