Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 197.70

-4.5%

2:50 PM EST

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To: gbh who wrote (51964)	8/12/1998 3:57:00 PM
From: djane	Read Replies (2) of 61433

Yahoo thread posts on put buyer in ASND. Can an options guru explain the meaning... ____________________________________________________________ Message 20071 of 20080 Reply unusual put volume Shorti_Long Aug 12 1998 2:06PM EDT 4200 contracts traded on the Jan of 2000 puts---$30 strike. LZCMF. i sold some of these when Ascend dropped to 44 on the Stratus rumors, and from that time until today, only 4 contracts have traded ............. Any theories? __________________________________________________________________ Message 20073 of 20080 Reply puts davisj2 (39/M/New York) Aug 12 1998 2:16PM EDT Are you sure? Jan 2000? $30.00? puts? ____________________________________________________________ Message 20075 of 20080 Reply Put Action Fortunax (37/M/Bowie MD) Aug 12 1998 2:43PM EDT Shorti, Without looking at the whole picture it is difficult to tell the motives behind the Jan 2000 30 Puts trade. My best guess is that the heavy put volume is not related to the fundementals or the direction of the stock but rather a conservative bullish stategy. The Jan 2K Puts could have been part of bull spread or condor strategy. Regards, Fortunax _________________________________________________________ Message 20077 of 20080 Reply puts gwynnj Aug 12 1998 2:55PM EDT I'm seeing a volume of 2900 contracts - still remarkable. But it could also be a mistake, especially since it appears to be different from what you were seeing. I've heard that several bears are doing "short" Year 2K plays on stocks they feel are vulnerable to Yr 2K concerns or just volatile in general. I've also heard that some parties have been trying to manufacture Yr 2K concerns. But this is heresay and speculation. I wouldn't normally sell puts that far out, but a $30 strike for a solid company seems pretty reasonable risk to me, even in the most nightmarish scenarios people have put forth. So I wouldn't worry about your position too much, just be sure you have adequate cash and/or margin to comfortably accept the put in the worst case scenario. Usually these huge blocks are done by the big market makers and shakers or really aggressive speculators (we're talking about $650,000+ at risk of total loss). Obviously another big market maker and shaker perceived it to be a good risk and was happy to sell the puts. j _____________________________________________________________ Message 20080 of 20080 Reply puts----conclusion Shorti_Long Aug 12 1998 3:34PM EDT A friend pointed out that there was similar volume and timing on the QQAUH puts also. So, it appears that someone bought the September 40 puts , while simultaneously selling the 30 leaps. Someone with major bucks and collateral.......

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