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

To: Chris Ariens who wrote (40280)	3/19/1998 10:22:00 PM
From: AlanH	Respond to of 61433

I've done my own test to see where the options expiration theory... Please be careful when making assumptions relative to "open interest." OI more closely expresses opportunity cost than profit/loss. Current positions are far more motivating, and are not directly reflected by open interest. As you know, the option writer has a number of alternatives in order to cover. Influencers include: relative value of offsetting options, short-term rates, liquidity and valuation of the underlying, etc. Arbitrage is also an important consideration. IMHO, the nice pop seen today was the result of a slight breather followed by arb unwinding. (If so, an AM rally could easily occur.) The question remains: is ASND in a short call/long put situation, or the opposite.