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Technology Stocks : Dell Technologies Inc.

DELL 146.68

-1.7%

Nov 7 9:30 AM EST

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To: Frank Ellis Morris who wrote (141448)	9/3/1999 9:05:00 PM
From: jmac	Read Replies (1) of 176387

With a stock like the Q, I usually play it with options. I have the Sept 170 calls but I also sold the Sep 195s and 200s. My cost came to just under $2. So, though I was much happer with the stock in the 180s or 190s and I am upset I didn't sell some, I haven't lost much money either. Now, in my IRA, the Q is a great stock to buy and sell covered calls several months out. Just today, I bought the Q at 164 and sold the Jan 165 calls at 24.5. If Q closes anywhere above 165 by Jan, 2000, I make 15.5% for a 5 month investment (38% annualized). I did this with RMBS also. I bought the stock in the upper 70s and sold the Jan 100s. Got a great premium on the calls and I don't have to worry about the volaility. Frankly, I think the Q rebounds next week after the analyst meeting and the Q management comes out and says the shortages are the same shortages we spoke of last quarter. We are track to make .88 this Q and over $1 next Q. At that rate, you have a stock making over $4/year and selling under $200 (PE of 50) for a stock probably growing 40-50% per year.

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