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Technology Stocks : Dell's Daytraders Decision Site
DELL 120.60+1.8%Jan 9 9:30 AM EST

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To: Investor A who wrote (220)7/17/1997 11:20:00 AM
From: wiz   of 1124
 
Investor A.

re:

Why is Dell puts so expensive? Is it because the market expecting a crash? How high
could it go?

Dell has a very high beta, and these stocks options are always expensive. As to trying to draw conclusions from the fact that the puts are expensive look at the calls, and remember, the puts were maybee even a little higher(percentagewise) when this stock was in the 60's to 70's.(and that was not that long ago)-g-

Some of the thinking on this thread has been to wait until after the split, and earnings to go short, or buy puts. I tend to agree with this thinking. The market is a bit on the crazy side right now, and just because a stock is overvalued, doesn't mean it will go down. The market is full of "overvalued" stock. Also bear in mind that the chance of good DELL, earnings next quarter are pretty good!

Mark
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