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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: taxikid who wrote (20875)	11/3/1997 11:04:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 61433

may also be safer and better to write the calls$30- and get 11/16-7/8x5k for novs- this way even @.75= $3750-fees returned $$ no risk- if they get called makes5kx.50+2500+3750=$6250-= as opposed to risking more $$ and more heartaches- $150k position for a small investor IS way out of line. the only way to safely repair a losing position is sell against it.{as opposed to waiting for it to recover and if it doesn't the time spent waiting costs you in lost interest} maybe selling the $25s and if stock falls further- buying them back would make sense depends on how liquid one is- taxi- i said i wasn't going to post but i got over it- let them excommunicate me- i ain't going out without a fight. Taxi, You have a point about added expense. However, your suggestion does nothing to protect against the downside. It does lower the breakeven price. Since a covered call is a synthetic put and if one wanted to lowever the breakeven price, one should sell the shares and sell 50 of 30 strike puts. This way one would have less equity tied up, the same downside risk and the same upside potential. Glenn