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Politics : Ask Michael Burke

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To: Freedom Fighter who wrote (74656)	1/27/2000 1:56:00 PM
From: Eggolas Moria	Read Replies (2) of 132070

Didn't we go over this stuff a year ago? [I hate being so old . . . no memory] I seem to recall that Dell had once bought calls and sold puts on their stock as part of a program to lock in a low price for buying back needed shares to offset stock options, but that the sale of puts got the SEC somewhat concerned. Didn't they voluntarily abandon that part of the practice or is my memory swiss cheese? Buying calls: Well, if you continue to expect the stock to appreciate, it's a cheap insurance policy against having to repurchase shares at higher prices. If the stock declines more than the cost of the premium, you're still ahead of the game.

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