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

To: CJ who wrote (56958)	11/9/1998 7:44:00 PM
From: thebeach	Read Replies (2) \| Respond to of 61433

If someone has sold the Nov 55 calls and expects the stock to run past 55 then he/she should cover.They should only cover if they expect the stock to run past the cost plus 55.Otherwise hold on and if the stock hits 55 tomorrow they could be in deep doo-doo because the premium will still be quite high with 9 days to go and all kinds of rumors flying.You might think about buying some protection out to Dec,maybe the 60's.Good luck.

To: CJ who wrote (56958)	11/9/1998 10:57:00 PM
From: E. Davies	Read Replies (1) \| Respond to of 61433

"After 3 years of regularly selling cov'd. calls and having bought them back at times, what we have concluded is that, except for very ltd. instances, if you bought the stock right, and sold the calls right, it is more advantageous to not buy the calls back" I sell covered calls all the time, but since Oct 1 I refuse to sell them on ASND. Nor am I allowing myself to sell naked puts (same reason). Also, you have to admit (no offense) that you did not "sell the call right". It was based on the common sense idea that there was no way the market could just pop right back to where it was. It all simply boils down to asking for an opinion of what the stock movement is going to be in the next couple of weeks. My guess is a pullback to ~46 this week and expiration right at 50, therefore my suggestion to buy the calls back. Sorry for the confusion. Eric