Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 205.50

-1.5%

Dec 5 9:30 AM EST

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To: Peter Yang who wrote (40258)	3/19/1998 6:49:00 PM
From: Dana Weick	of 61433

Your equation is incorrect: The outstanding March 30 calls are worth (x-30)8953, when x>30 The outstanding March 35 puts are worth (35-x)7838 when x<35 Therefore your equation should have read: Total = 8953(x-30) + 7838(35-x) which reduces to: Total = 1115x + 5740 Correction, deleted the rest of my response as it was it error. You do need to consider the price at which each option was written in order to determine and "pressure". Example, if the stock was at 34 and 1000 30 calls were written for 5pts and 500 35 puts were written for 2 pts where is the option writers maximum profit? You can't go by just the open interest.

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