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

To: Stephen M. DeMoss who wrote (36562)	2/26/1998 10:52:00 PM
From: Inga	Read Replies (1) \| Respond to of 61433

but the April 40 puts cost less than 5 dollars Pardon me for not making myself clear to you. I think that the possibility of getting to 40 in March is very high, especially the way the stock price is going with the company fundamentals rather than speculation (that's why we haven't seen any wild swings like in the past). When the stock price gets to 40, I will sell all positions (stocks and call options) purchased below 40 to preserve the profits. I will then purchase a very short-term (one month at most) "unbalanced" straddle (more calls than puts) to see which direction the stock goes and establish proper entry position a few days before the options expire. Since it is not very likely that Asnd drops back to 32-33 before getting 40, I am willing to take the risk riding it to 40 rather than spending money on puts since the chance of wasting 5 dollars is much higher. If the stock does pull back to 35, I don't think that it would stay there long with the current visibility. Puts give you some profits in this case but the risk/reward ratio is unfavorable. Good luck.