Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 211.05

-0.7%

Dec 1 3:59 PM EST

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To: Finder who wrote (23204)	11/13/1997 11:47:00 AM
From: Harry Ehrlich	Read Replies (2) of 61433

Question on options: I've been reading up quite a bit on options, and I have a question, complete with assumptions and all. Looking at open interest, one can't tell who's doing the buying or selling. We just know that a call was both bought and sold. My assumption is that the public buys the calls/puts, as it is less to lay out than the stock would cost. I also assume that the MM's and sophisticated traders (some on this thread) sell the options and pocket the premiums. There is much risk and so I believe it is the pros that sell to open. I will omit the hedges and spreads for now. So, if the MM's are selling the calls, they want the stock to stay below the strike price, so the call can expire worthless. Therefore, why has it been claimed that the MM's are manipulating the stock towards the strike price? Yeah, it's complex and if someone can provide some simple insight, I would appreciate it. Thanks. Harry

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