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

To: zyx1996 who wrote (56398)	10/22/1998 9:56:00 PM
From: ibrandybuck	Respond to of 61433

I know nothing of PLAT. But lots of stocks appear to be suspiciously "sticky" around a strike price on options expiration day. This trend is sufficiently obvious that many holders of at-the-money positions, or even slightly out-of-the money positions, exercise their options based on their opinions of the stock's movement during the following week (rather than closing their positions and taking up a new position). Though I generally avoid assignment when a stock closes just at-the-money, I have also been assigned frequently enough that your situation does not seem particularly unusual. I have even been assigned out-of-the-money positions (usually only if 1/16 or 1/8 out-of-the-money). In retrospect, it looks like the exerciser was right! The assignment is done randomly by a clearinghouse - you simply were the unfortunate one to be assigned the buy. If you sold the put, you presumably were willing to buy the stock at that price (less the premium). You've now done so. I would say Congrats!, but it sounds like you didn't really want to be in a long position at that price?

To: zyx1996 who wrote (56398)	10/22/1998 10:15:00 PM
From: TimeToMakeTheInvs	Respond to of 61433

Hi zeren, their reply was correct. Many people who first sell puts think they can only be exercised at expiration. My understanding is that if puts are being exercised, all the available sellers of those options are placed in a huge orange and black hat with a funny face on it (Octobers puts only) and those whose names are drawn out of the hat, by a skelaton (sp?) wearing gloves, at random are assigned. Some people consider the number of outstanding puts when selling or rolling one over in addition to the premium. Hope this has illustrated the scientific market making which takes place! tim