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Technology Stocks : Dell Technologies Inc.

DELL 120.49

+0.7%

Jan 16 3:59 PM EST

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To: TRCM who wrote (153215)	2/8/2000 2:28:00 PM
From: D. Swiss	Read Replies (3) of 176387

TRCM, LoF is 100% correct, by selling puts you are selling someone the right to sell you the stock at a predetermined price. By doing so you are betting the stock will go up from here and you have a built in cushion from today's price in the from of the premium that they pay you for that right. For example, if the stock is at $37 and you sell 3/00 35 puts and get $2 for them, the stock can go to $33 before you get hurt. If you think the stock is closer to a bottom than a top this is a conservative options strategy. Hope this helps. :o) Drew

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