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

To: peacelover who wrote (38397)	3/8/1998 6:08:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 61433

I hope you don't mind. I ask to learn. Does it matter which option interests, puts or calls for both the 35's and 40's? or it doesn't matter? Please help. Thanks! peacelover, It is a combination of the total OI for both puts and calls. Most calls and puts are bought by the small investor which leaves the market maker short the stock in either direction above and below the strike price. The market maker can profit regardless by either going long shares to off set calls, going short shares to off set puts or alter the implied volatility to make the strike price he/her prefers more attractive. This is what appeared to be the case at February's expiration. They reduced the implied volatility on the 35s for both puts and calls. The OI became the highest at 35 and the stock closed close to 35. I have not noticed an extreme reduction in the implied volatility of the 40s for March as of yet but it is still early. Glenn