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


To: djane who wrote (44578)4/16/1998 11:12:00 AM
From: gbh  Read Replies (2) | Respond to of 61433
 
Question for some knowledgeable options guy/gal:

Can someone please explain to me the theory behind the supposed expiration week "gravity" pull of a stock to the strike with the largest open interest? I've seen it stated and explained here many times but I guess I'm just too ignorant, and need it one more time.

It sure does seem that ASND and CSCO are gravitating toward the 40 and 70 strike.

Thanks.