Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jack Stirling who wrote (20878)	11/4/1997 8:53:00 AM
From: john p. carney	Respond to of 61433

Well Jack, if you really think ASND has much more down side and want to protect your long shares, you would purchase puts (for example Dec 25s symbol QQAXX) to protect your entire position you would buy 4 contracts (each contract gives you the right to sell 100 shares to the put writer (seller) at the strike price. As the price of the stock sinks, the value of the puts increases. Lets say for grins that ASND goes to 10 on Dec option expiration day. The puts would be worth $1250 dollars per contract x 4 contracts - $400.00 (what you paid for them) - commisions. Of course if you make money with the puts you can always sell them before expiration day and will pocket some time premium also. Personally, I think the ASND news was misunderstood yesterday ( I know I thought it implied 10% YEARLY growth at first) and I don't know if I can see ASND sinking much further. Hope this helps. John