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

To: Five2Mil who wrote (28897)	12/30/1997 2:14:00 PM
From: Alex Raytselsky	Read Replies (1) \| Respond to of 61433

Five2Mil: If the stock is at 30 in feb, your options could be worth as high as $3 per contract. You could sell your calls to close at any time, whether you make or lose money. The reason I think you could get $3 per contract is because when the stock moves the premeum the caller is willing to pay will increase, and since you have another month worth of the premium. Hope this helps, you can buy a book called Options as strategic Investment by my favorite author Lawrence McMillan. It will give you more insight.

To: Five2Mil who wrote (28897)	12/30/1997 2:44:00 PM
From: username	Read Replies (1) \| Respond to of 61433

Five2Mil: Yo! you are better off understanding options a little BEFORE you buy em!!! Your investment firm should have send you a pamphlet, go to the CBOE website at cboe.com and get yourself some education. Whatever you paid for those options is 1st semester options school. Study up, there will be a quiz. pete

To: Five2Mil who wrote (28897)	12/30/1997 3:02:00 PM
From: Inga	Read Replies (1) \| Respond to of 61433

Would you please tell me your reason why you purchased the Mar 35 call since it is way out of the money. You take a very high-risk gamble if you purchase options simply by hoping/guessing that ASND stock price is going up to or above 30. I purchased Mar 30 call when the stock price is around 26-27 to protect my short position at 26-27 since I expect the price to fall. The options contract covers twice the number of shares I am shorting. If I am right, my short position makes money. If I am wrong and the stock jumps, I will wait until it gets above 30 to cover. The losses by the short are offset by half of the options contract, the other half makes money since the stock price appreciates. You must trade to recover the original premium during the life of the contract. I find this strategy starting to work well for me since I made the mistake INVESTING in ASND early in the summer. Trading ASND this way helps me recover my losses fast. Remember to buy MAR 20 or MAR 25 put to protect your trading shares when you long ASND at low-priced range at 22-23. You never know, if this dog drops to 15, the put protects your trading shares and also makes money. Good luck.