Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Gary Korn who wrote (26510)	12/5/1997 6:11:00 PM
From: lin huan chen	Read Replies (1) \| Respond to of 61433

Dow Jones Newswires -- December 5, 1997 Options Rept:Ascend,H&Q Rumors Take Traders In 2 Directions By Steven M. Sears NEW YORK (Dow Jones)--It's a tale of two rumors in the options market. Both are equally sensational, yet only one is tradeable. Barely anyone is trading options on a rumor that Merrill Lynch is in advanced talks to buy Hambrecht & Quist. But a takeover rumor of dubious merit, combined with a chief executive's bland pronouncement that he is comfortable with earnings estimates, have caused explosive trading in Ascend Communications. Some of the trades in the networking suppliers' options are larger than all the trades that have moved in Hambrecht & Quist. Merger rumors are nothing new in the securities industry and that is probably why the Hambrecht & Quist rumor isn't getting off the ground. Enough traders have lost enough money speculating on red-hot rumors involving names like Lehman Brothers that many are gun-shy about risking more capital on yet another rumor. If something more solid comes out to bolster the rumor, trading will probably accelerate. In these times of real fear about earnings sustainability and the Asian Contagion, some good fundamentals and a palatable takeover rumor can skyrocket trading volume. Ascend's option buyers have gained a lot of confidence from the company's chief executive, who said Thursday at a Deutsche Morgan Grenfell conference that he's comfortable with earnings estimates of $1.05 a share for 1997 and $1.15 for 1998. The earnings affirmation is particularly good news for networking industry investors, who have seen two of the sector's largest firms, 3Com and Cabletron Systems, warn that they would miss consensus estimates for their November quarters. A takeover rumor of dubious authenticity is also spurring trading. Lucent Technologies has been mentioned as a possible suitor for Ascend. With the stock up 3 3/8 to 30 1/4, traders are chasing the December 25, 30, 35 calls. Activity in the December 30 puts suggests that some traders are probably straddling the stock to get a piece of the action regardless of which way price moves. A straddle consists of a long call and a long put that have the same strike price. Anyone who is straddling Ascend using the December 30 options will make money if the stock price increases above 30. If the stock price falls, the put option will increase in value.

To: Gary Korn who wrote (26510)	12/5/1997 6:23:00 PM
From: hpeace	Read Replies (1) \| Respond to of 61433

Gary, I got out of the dec 30's at 2.875.. Is this rumor thing good in your opinion??? or a better question. What are you doing with it.. i know that the 5/8's yesterday to 2 and 7/8's today was great.