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Technology Stocks : Dell Technologies Inc.

DELL 135.98

+3.0%

3:59 PM EST

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To: TTOSBT who wrote (152749)	1/31/2000 3:42:00 PM
From: Chuzzlewit	Read Replies (2) of 176387

TTOSBT, Shorting puts is bullish. Essentially, you make money if the price of the stock stays the same or even goes down a little (depending on the time value of the option). You make the maximum if the price of the stock rises to the striking price. See: Message 12733532 for an example of my use of this strategy. In this case (LGTO), I will make $7 per share if LGTO rises to $30 or better on options expiration. My break-even occurs at $23 on the day of options expiration. A positive in this approach is that you have use of the cash you get for selling the options (although your buying power is reduced). A second positive is that even if the shares are put to me at $30, my net cost would be $23 (excluding brokerage expenses) which is about $1.50 less than the market for the stock today. TTFN, CTC

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