SI
SI
discoversearch

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 133.78-0.1%Nov 14 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Alohal who wrote (152446)1/28/2000 5:04:00 AM
From: rudedog  Read Replies (1) of 176387
 
Alohal -
What a day... Your post mirrors my own thinking. The explanations of management don't seem to add up with the data yet, which is more of a concern to me than the actual shortfall. Perhaps it will be more clear when the actual earnings come out.

My current thinking is to wait a bit until the dust settles since I have puts on 90% of my position (42.5s and 40s). If things get ugly over the next few weeks, I will execute my puts and get down to a small DELL holding (that would leave me with 6K shares) and watch for a chance to buy DELL calls. This could be a great chance - if the stock really does drop into the low 30s, I would watch the Feb 32.5s and 35s (depending on where it goes). If the premiums on those really drop hard with the stock only a point or so out of the money, I would make a big bet... Also pick up a bunch with a little longer horizon, again depending on the premium, maybe May 35s or 37.5s.

Just looking at action on DLQBU Feb 37.5s, which are technically in the money, they were as low as 2 1/4 today... that will give me a proxy for how option sentiment is forming if the stock continues to drift down over the next few weeks. With the time premium gone, out of the money calls might get REAL cheap... a huge opportunity.

If the stock stays where it is now or rebounds I will sell the puts back and make a few bucks that way... either way I'll make a play before earnings.

I also think it will be back in the 50s by year end or early 2001 but would rather play this volatility with calls.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News