Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 208.98

-1.8%

Dec 26 9:30 AM EST

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To: Glenn D. Rudolph who wrote (9056)	8/17/1997 5:03:00 PM
From: Finder	of 61433

The individual stock options do not cause major sell or buy order on close imbalances, it is the S&P 500 options, or the MS tech index etc that cause the end of day phenomonon. As brokerages unwind program trades done earlier in the month to lock in a spread, the sell the stock they bought on the close. They don't care where that drives the prices because any fall in price at close is reflected inthe settlement of their S&Ps etc which have a cash settlement. If you didn't have program trading you would not have had the 120 point drop in the last 30 minutes. Specialists see this coming before close, and indeed must publish imbalances. They will frequently go short at close to absorb this action since it is predictable covering on MOnday morning. This is why options activity is frequently reversed Monday morning.

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