Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 213.24

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3:59 PM EST

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To: Saif Saifee who wrote (8279)	8/10/1997 4:41:00 PM
From: Carl R.	of 61433

Good point. During the last 15 minutes prior to expiration, I wouldn't be surprised if option writers attempted to manipulate the stock in the following case: Imagine the stock is at 50 1/8, and I have written 1000 Calls with a strike price of 50 that will expire in 15 minutes. I hold 100000 shares of stock against those options. I sell the stock in the hopes that I can know the price under 50 so that none of the options will be executed. I do this knowing that if the stock rises anyway, I will be dead meat as I will have to buy 100,000 shares back at a loss in order to deliver them at 50. Give me a big enough position, and little enough time, and it would be a good bet. Carl

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