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

To: Jan Crawley who wrote (45005)	4/21/1998 2:24:00 AM
From: AlanH	Read Replies (2) \| Respond to of 61433

Hi Alan, I wrote Asnd covered May45 (for prem. of $1.5) and May 40 calls(for $2 1/4). Would you like to comment? Hi Jan, I'd like to understand more about your objectives inre ASND. For example, are the covered writes a defensive posture or are you happy to liquidate the underlying (ASND) @ 40 or 45? Cost basis? I suspect that the May 40C is of primary concern? As you may know, the risk of assignment is minimal while there is time value. Assuming time value, a favorable approach is to "roll-up"; that is, buy back the May 40 and concurrently write May 45. Considering that the maximum profit potential for your May 40C is $2.25, you may be able to enhance profits by rolling into May 45C. HOWEVER, you should be aware that some of your downside protection (on ASND) will be sacrificed. (That's why I'm interested in understanding your objectives.) Good luck.