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

To: Mark Duper who wrote (38978)	3/13/1998 9:19:00 AM
From: Jeff Jordan	Respond to of 61433

Don't the MM care about the put options as well?>>> Yes

To: Mark Duper who wrote (38978)	3/13/1998 9:33:00 AM
From: George Coyne	Read Replies (1) \| Respond to of 61433

<< Sorry if this is very simplistic to you guys, I just want to learn how this works.>> I don't believe it's simplistic. The thesis is that the MM are the ones primarily short options, and they hedge their positions. This causes an effect tending to drive the price of the underlying security at expiration, toward the strike price causing the least $ value for expiring options. I will look up a couple of posts on this thread from about 6 mo. ago detailing this effect if you like. G. W.