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

To: hal jordan who wrote (23487)	11/14/1997 5:33:00 PM
From: sepku	Respond to of 61433

Hal, I wish I was adept enough to answer that, but I don't trade options so I wouldn't be able to offer an educated opinion. Day trading is time-intensive enough to add options to the mix! Style Pts.

To: hal jordan who wrote (23487)	11/14/1997 5:46:00 PM
From: James A. Shankland	Read Replies (2) \| Respond to of 61433

Have you checked out ASND Jan 99 leaps for 25. Breakeven is around 31 and change. I show these at 6 7/8 x 7 /14, meaning breakeven is more like 33, counting the time value of the money. Still, if you think ASND will move into the 30's with dispatch over the next 6 months, it's a good play. Selling the option is also a good covered call play, if you own ASND and aren't quite as optimistic about its prospects: sell the LEAP today, get ca. 30% of today's value of your stock in cash, up front. Deliver your stock in Jan. 99 for $25, which is still a wee bit more than it's worth today. Make 30+% in 14 months. In the unlikely event of a water landing ... I mean, of ASND not being over 25 by Jan. 99, well, you still have the stock, worth whatever it's worth, and you did get those $7 out of it back in November of 97.