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

To: Jan Crawley who wrote (32887)	2/2/1998 3:44:00 PM
From: Doug Skrypek	Respond to of 61433

Sure: If I buy 100 ASND Feb 30 calls, somebody has to sell them to me, so for every buy of one contract there is a sale of one contract. The seller may be a market-maker, trader, speculator, porfolio mgr, etc. So, just because a large amount of options contracts trade, it really does tell us much. Although large option trades are impressive, don't put too much credence in them when deciding whether to buy or sell something. Having said that, as expiration approaches, a ton of activity will take place at the nearest strike. The Jan ASND 30 PUT/CALL was a great example, ASND closed at 30 1/16, thus depriving option buyers of profits, but rewarding sellers of the 30 strike handsomely.