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Technology Stocks : Ascend Communications (ASND)
ASND 202.47-4.5%Dec 17 3:59 PM EST
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To: j g cordes who wrote (12246)9/13/1997 1:21:00 PM
From: David Rosenberg   of 61433
 
.. part of the selling pressure undoubtedly came from the call buying. The mm's have to offset the risk by selling stock against the created call, they're not going to assume that risk themselves.

JG what do you mean by ... "created call" if you mean by (the market makers') selling the call then the offsetting move should be to buy the stock thus negating any risk as the shares will be there when "called".

Conversely selling of puts by a market maker should be offset by selling stock short so the funds would be there if/when necessary to buy the stock on exercise.
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