Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 235.39

+2.9%

Jan 23 9:30 AM EST

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To: Matt Webster who wrote (24332)	11/21/1997 8:04:00 PM
From: Harry Ehrlich	Read Replies (2) of 61433

Check the December issue of Bloomberg magazine (print version). The article is called "Repairing Broken Stocks". For every 100 shares you own, buy 1 at the money call and sell 2 out of the money calls. Your investment is minimal as your premiums from sales pay for your purchased calls. You are covered all the way; your breakeven is lowered; your upside is limited. The basic premise is that the stock will go up slightly, but not as high as your cost basis. This is the same premise that is present when "averaging down". The article alone is worth the cost of the magazine. Harry

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