Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 138.58

-1.5%

3:59 PM EST

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To: Meathead who wrote (162303)	10/22/2000 4:13:35 PM
From: mepci	of 176387

Re: Dell will have to pay $1.9 billion to extinguish those puts if its stock doesn't appreciate before the puts expire over the next three years... most likely a moot point. It is not only mute, it is actually advantageous to Dell. Previuosly I remember an average net cost of $39. The discrepancy may be due to the premium value. In that case the exposure is $9.50/shr. If they do buy at that price, that can turn into a profit over the 3 years. And they probably sold a lot more puts since July, bringing the overall cost even below current price. For TM to get the results he got before, Dell must have a consistent policy of keep on selling puts as the price kept on going down. If Schneider did not do this , I want his head.

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