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

To: Steve Rolfe who wrote (29227)	1/3/1998 11:21:00 AM
From: hal jordan	Read Replies (2) \| Respond to of 61433

[off-topic]Steve, Generally speaking, I have never bought spreads like this. Though with volatility you can make some good money with a swing either way. I normally will only buy puts if I have a lot invested in the underlying stock itself. If you don't know which way the stock will go, a spread as you mentioned could be good insurance to carry you through earnings. I would recommend you look up Herm on the Covered Calls Case Study thread and post this query to him. He is very good with options and has a good thread going to discuss the very type of situation you bring up. Typically, he will buy the underlying stock and write covered calls to collect the premies, then buy back if the stock falls and resell CCs on the next upswing. My personal take would just be to hold the April options on AMAT through Jan, as I feel Jan will bring litle danger of downside. Then, buy the puts in Feb. Please note I have lost a lot of money this year. So be sure and look at other perspectives. Hal