Have you checked out ASND Jan 99 leaps for 25. Breakeven is around 31 and change.
I show these at 6 7/8 x 7 /14, meaning breakeven is more like 33, counting the time value of the money. Still, if you think ASND will move into the 30's with dispatch over the next 6 months, it's a good play.
Selling the option is also a good covered call play, if you own ASND and aren't quite as optimistic about its prospects: sell the LEAP today, get ca. 30% of today's value of your stock in cash, up front. Deliver your stock in Jan. 99 for $25, which is still a wee bit more than it's worth today. Make 30+% in 14 months. In the unlikely event of a water landing ... I mean, of ASND not being over 25 by Jan. 99, well, you still have the stock, worth whatever it's worth, and you did get those $7 out of it back in November of 97. |
