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

To: hal jordan who wrote (29213)	1/3/1998 12:03:00 AM
From: Gary Korn	Read Replies (4) \| Respond to of 61433

Hal, You may be right, however, I'm not good at chewing up assets with downside insurance. I've found that puts fail if (1) the stock rises or (2) the stock idles. I think they only help if (3) the stock drops fairly sharply. This has happened to me when I've done protective puts. That is, the stock idled and slowly, too slowly, drifted lower until the puts expired worthless, costing me money. I guess I would have been happy (or at least protected) had the stock really tanked. I will tell you, though, that the puts let me sleep easier...no fear of the great precipice (even though I ultimately lost money on them...doubtless because I did not deploy them properly). Consequently, I think my investment style calls for me to move assets into a stock that I think might have a greater upside potential. But I do appreciate your suggestion! Gary Korn

To: hal jordan who wrote (29213)	1/3/1998 1:02:00 AM
From: Steve Rolfe	Read Replies (1) \| Respond to of 61433

Off Topic - Hi Hal. I would have emailed this question, but yours is not listed. I am new to options and recently bought some AMAT April 25 Calls at 7 1/2. I have been toying with the idea of proteting them with some AMAT Jan. 30 Puts (currently 1 1/8) as you are suggesting (insurance). These look much more attractive than lower strike price puts as I have a possibility of making money on the puts as well as the calls if AMAT drops in the next 2 weeks and then goes up before April. Jan 25 puts would actually serve more as insurance than the Jan 30 puts I am tempted to buy. As I write this I realize the Jan puts only protect me for a couple of weeks and maybe I should look at the Feb puts. As you can see my dilemma is deciding exactly which puts would be most suitable. I am really trying to guard against another series of bad news from ASIA. What are your thoughts on this? Thanks. Steve