Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 209.76

-1.2%

2:55 PM EST

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To: Matt Webster who wrote (37570)	3/4/1998 6:22:00 PM
From: Sowbug	Read Replies (1) of 61433

That's good to hear, Matt. It sure makes sense to me -- holding 100% of the cash, as far as I'm concerned, is the same (in terms of level of safety) as selling a covered put, and as far as I can tell, selling a put against a short position is a goofball maneuver. Do you know of a brokerage that allows this? Schwab apparently doesn't. Sowbug, some IRA's do allow selling of what is called cash-protected puts. You don't have to hold the shares but you do have to escrow enough cash to be "put" if the event happens. So to sell a $35 put, you have to escrow $3500. This is better than going long stock, assuming low transaction costs, because you collect interest on your cash, plus the cash you bring in, plus you get the premium.

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