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

To: Jim Hott who wrote (28447)	12/20/1997 4:01:00 PM
From: Douglas V. Fant	Read Replies (2) \| Respond to of 61433

Jim, Sure! You close one current position and open a new position simultaneously. Let's say you sold 10 Jan 25 call options. So you are now short 10 jan 25 calls. Then you want to close your jan 25 position and now open say a feb 25 call position. Instead of doing two separate transactions, tell your broker that you want to do a "rollout" from the jan 25 position into the feb 25 position as one transaction. Give the broker the "net dollar difference" for which you'll "rollover" the option positons, simultaneously buying the jan 25 to close and selling the feb 25 to open. This gives the brokerage house more flexibility and they'll invariably get you a better deal pricewise than you'll get if you do two separate transactions.... Did I write that so it makes sense???? Sincerely, Doug F.