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

To: Carmine Cammarosano who wrote (43758)	4/11/1998 11:53:00 AM
From: jach	Read Replies (1) \| Respond to of 61433

<April/May 40/45 calls having a high open interest, were most of these sold to the market makers? Is there an imbalance? Have the market makers bought a lot of these call contracts from investors? If they have, they certainly hope ASND will move up!!> MM - Market Makers make trades in certain stocks, more like dealers, they may or may not do options MM - Money Managers, they do everything Big Investors - they do everything too, and if one owns enuff $$, investors can control to some extend also Medium Investors - they try to do everything Small Investors - they like to do everything Smart Investors - they watch everything and $$ cost average into the dow 500, nasdaq 100, and Euro 50

To: Carmine Cammarosano who wrote (43758)	4/11/1998 6:26:00 PM
From: Greg Jung	Respond to of 61433

Carmine, when a market maker redeems an in-the-money call at or below par he will simultaneously short the stock to keep delta at zero. Inverse effect for the puts. Since #puts is about 1/5 #calls the pressure is down. That's the theory, anyway, I don't have a strong opinion on its validity. However there is traditionally a good deal of analyst's negative remarks that seem to come on options week. If you're looking to buy stock on a big dip, though, the week after seems to have been even better than friday. Asnd dipped to near 37.5 before bouncing, is that a strike? Maybe signals the friday endpoint. Greg