SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Dell Technologies Inc.
DELL 133.35+0.1%Nov 28 9:30 AM EST

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Eggolas Moria who wrote (110798)3/22/1999 4:50:00 PM
From: SecularBull  Read Replies (1) of 176387
 
Gary, it's more than a hedge. The company sells shorter term puts and buys longer term calls with the proceeds. The put buyers finance most of the deal, especially in the past upward moves. If the stock drops, then DELL is in at the put strike. If the stock moves up, they're completely hedged.

Regards,

LoD
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext