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Technology Stocks : DSC Communications

DIGI 0.0001000

0.0%

Jun 3 1:06 PM EST

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To: john dodson who wrote (2083)	5/17/1997 11:55:00 AM
From: DanZ	of 4429

John, Your observation matches my observation over the past 15 years or so. Stock prices tend to migrate towards the nearest option strike price at expiration. Obviously this doesn't happen all the time, but it happens often enought that it can't be dismissed as a coincidence. My guess is that large holders are short puts, calls, or both, and it is to their advantage to drain as much of the premium out of both sides as possible. DIGI closed above support at 22 1/2 on Friday and is still in breakout mode, IMO. If the rally is to continue, I wouldn't expect the stock to trade below 22 next week. If it does, then I think this breakout is a fakeout and the stock will continue in it's trading range. But, the longer term chart looks very positive for a re-test of 25 and then 30. Dan

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