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

To: John Meares who wrote (60081)	2/20/1999 7:53:00 PM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 61433

I was looking at the March 125 and 130 puts for INTC - they seem to have a large premium - am I reading them right? I was thinking about selling puts on ASND and INTC (long position) - John, The March 125s closed at 4 3/4 x 5 1/8 and the 130s closed at 7 x 7 1/4. The implied volatility is high due to the recent volatility in INTC itself. It is my opinion that the premiums are reasonable based on the risk of the stock movement. If it were I, I would write the 125s because the premium as far higher than the 130s. Not the price but the premium received. This is only a good approach if you prefer to collect the premium and take less risk of assignment. I am long INTC shares at present so I like the stock. The ASND March 75s are 3 3/4 x 4 1/8. There is not a lot of volatility built into those. Judging by the open interest and the premiums, I would say the market believes INTC has a much greater chance of falling then ASND. I alos agree with the market. Glenn