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

To: DHB who wrote (51294)	8/3/1998 6:04:00 AM
From: michael modeme	Read Replies (1) \| Respond to of 61433

To increase the volatility of return, I usually like to purchase Leaps on ASND with low strike prices. Their premiums are quite low (strike + cost of option - current stock price), therefore every point rise/fall in ASND's stock is reflected in close to a point rise/fall in the Leaps. And with a lower price of the option, you end up drastically increasing/decreasing your rate of return. As an example, Jan 00 30 call Leaps on ASND are selling for around $20 or so -- a 1 point rise in the Leaps will give you a 5% return, whereas a 1 point rise in the stock gives you a return of 2.3%. Take it easy Dan, and get some coffee in ya -- much too early to be up!! Cheers