Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 121.57

+0.8%

10:08 AM EST

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To: SecularBull who wrote (153325)	2/8/2000 5:12:00 PM
From: Chuzzlewit	Read Replies (1) of 176387

Your error: selling a put is bearish. Simple math -- when the value of the stock increases the price of the put decreases. I know of nobody who sells a naked put with the intention of seeing the stock decrease in price. If that is you view you should either short the stock or buy a put. Regarding Edamo's comment: selling puts ties up perhaps the minimum amount of margin, compared to other plays....in fact buying calls diminishes your margin capability, as the option is not marginable! True! Selling a naked put decreases margin available to you, but since the premium received is in the form of cash the decrease is less than the amount of margin used in buying the stock outright. Also, purchasing a call option decreases the cash in your account which decreases your buying power (since a long option position is not considered equity for the purposes of calculating margin). TTFN, CTC

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