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

To: Glenn D. Rudolph who wrote (60082)	2/21/1999 11:10:00 AM
From: Robohogs	Read Replies (1) \| Respond to of 61433

If you look at ASND implied volatilities, they are high on the call side and low on the put side, especially for longer dated instruments. The market has to build in to its fair value calc of the stock, accretion to the take out price causing volatilities on long dated calls to appear high - this is because stock has 8-9 points (10-12%) appreciation built in by LU takeout. Selling covered calls way out might not be a bad thing - depends on one's view of LU movements.