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Technology Stocks : Dell Technologies Inc.

DELL 138.94

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3:59 PM EST

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To: PAL who wrote (137092)	7/20/1999 7:58:00 PM
From: jim kelley	Read Replies (1) of 176387

CTC, These European style puts are very interesting. A company could sell deep in the money puts and have them expire out of the money if the stock price continues to appreciate. The company could buy out the money European calls and then exercise the calls at expiration when the presumably they are deep in the money. By selecting a calendar spread the stock buyback could be precisely timed in advance. If the company stock does not perform as expected then the option buyback strategy could be modified by repurchasing puts and selling the associated calls. There would be no premature exercises of the calls or puts. These are very flexible buy back instruments.

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