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

To: sunfish who wrote (22382)	11/10/1997 4:06:00 PM
From: blankmind	Read Replies (1) \| Respond to of 61433

amazing, momentum selling doubles our haircut today with a 6.2% drop or 1 1/2 points.

To: sunfish who wrote (22382)	11/10/1997 4:12:00 PM
From: yard_man	Respond to of 61433

How bout sell the march 25 put and buy the march 25 call? Should be a net credit. Buy a near-term 20 put to protect and keep rolling forward each month. This is the strategy of another fellow. It's discussed in the textbooks -- beauty of it is it's a highly leveraged position with limited loss if you continue to buy the protective puts each month

To: sunfish who wrote (22382)	11/10/1997 5:24:00 PM
From: Greg Jung	Respond to of 61433

sunfish, re << options advise >> << I have a very long cash position in ASND, but would like to leverage the rest of my cash into this stock now. >> 1. Don't be so impatient. a) let stock fall and options decay and option premium get sucked dry. b) Check the possibilities, evaluate them carefully. Greg

To: sunfish who wrote (22382)	11/10/1997 5:35:00 PM
From: James A. Shankland	Read Replies (1) \| Respond to of 61433

ASND options advice sought. Anyone have any ideas on how to use options to play ASND if you believed that it would reach at least 30 by February 1? Here's one of many possible actions: Write the March 35 put (QQAOG) naked, get $13/share in cash now. Don't spend that cash :-)! As 3/20/98 approaches, the value of the option will converge on (35 - A), where A is the price of ASND; but not less than 0. If you are right, and ASND is over 30 by then, the option will be worth $5 at most (and perhaps 0, if ASND has broken 35). Buy the option back (assuming it's not worthless) with some of the cash you got for selling it in the first place. The rest of the cash is, as they say, yours to keep. Downside risk: if ASND is still below 22 come March, you will be buying the option back for more than you got for selling it (a loss); or you'll get assigned, and will end up owning more ASND stock. (You'd be buying ASND at 35, but applying the $13 you got, plus the interest it's been earning, to the purchase price, so it would really only cost you ca. $21 1/2 out of pocket.) Various refinements allow you to reduce the downside risk at the expense of some potential gain. (E.g., you could buy the March 20 put for $2 1/2, limiting your downside risk to ca. $4 1/2.)

To: sunfish who wrote (22382)	11/10/1997 6:24:00 PM
From: Paul M. Rengier	Respond to of 61433

sunfish, buy feb/march 25 calls, sell naked feb/march 30 naked puts and protect with 2x dec 20 puts. Should work these days. Psul

To: sunfish who wrote (22382)	11/11/1997 1:03:00 AM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 61433

sunfish, There a a whole number sof ways toplay that price scenario with options. However with ASND currently down, I'd just buy the naked April 30 call option. However if you do not believe that ASND will breach the $30/share level too significantly and intend to hold onto your stocks, then sell the Jan 30 call option and try just to collect the premium before ASND braoches $30/share... Sincerely, Doug F.