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

To: username who wrote (34320)	2/11/1998 1:34:00 PM
From: Thomas M.	Respond to of 61433

I wasn't sure if you meant the mechanics of it, or how to calculate the target. I was just about to ask you, but I now see you meant the mechanics. I don't really know, just have some ideas. Basically, my theory is that the MMs are the primary writers of option contracts. As expiration approaches, they want to minimize the net value of their open positions. So, if they've sold a bunch of calls, they will want those to expire as cheaply as possible, and will try to pull down the stock price. One smart guy who used to be on SI could identify "warning shots" the MMs would send in the week or 2 prior to expiration, indicating their intentions. He was frequently able to predict the INTC's price at expiration 3-6 days in advance. Personally, I have observed ASND often (maybe 70% of the time) ends a trending move Tuesday or Wednesday in the week prior to expiration week. I'm still watching that, and it could be an anomoly. Tom