Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 204.41

-1.0%

Nov 14 9:30 AM EST

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To: rag2rag who wrote (30827)	1/16/1998 9:41:00 PM
From: username	Read Replies (1) of 61433

in no way. You may have a confusion on the process. I bought a contract (a made up example) Jan 25 ASND for a buck (100 bucks, each contract controls 100 shares) and today my clearing firm automatically excercised my option because my basis is 2600 (2500 for the stock and a100 for the option conract), and the value is 3000. It's MY stock, not theirs... they are only facilitating the transaction. But I also bought (still make believe here) Jan 35s, which are worth less than I paid), and Jan 30s which are also worth nothing, because they expired "out of the money". The guy who sold the call option to me (covered with his 100 shares) has to give me his stock. the clearing firm has nothing to do with it, except of course to take their little slice. It only gets tricky when the stock closes just below or above a strike price. Not all stocks have options, as you probably know. Read my first answer again, and if this still doesn't make sense, ask me more questions. pete

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