Dell Technologies Inc. Message Board

STOCKTALK

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 138.94

0.0%

Dec 5 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Ken Beal who wrote (75094)	10/28/1998 4:05:00 AM
From: nihil	of 176387

RE: Why not buy the call? The key is maximizing stockholder value. Spending cash to buy calls would deprive corp of value and would either lose the premium or pay some stockholders a premium if the calls were exercised. In contrast, selling puts helps protect stockholders against deep price drops, accumulates stock at prices below recent or earns a premium. Another important provision is that corporations cannot legally buy their stock on an uptick (defined very broadly) because this is stock manipulation. But it can buy on the downtick. The preference for put selling is shown by its success by companies like Dell, Microsoft, and Intel in both earning premia and accumulating stock at good prices.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next