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Technology Stocks : Dell Technologies Inc.
DELL 132.42-0.6%12:21 PM EST

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To: McNabb Brothers who wrote (23415)11/27/1997 10:43:00 AM
From: hpeace  Read Replies (2) of 176387
 
hank, great..if dell doesn't work out. you can bury yourself free<gg>
since you want have any money left.

I'm not a dummy at options anymore..
it doesn't make sense to sell naked calls on dell.
now sell a dec 90 call on a rally after you have purchased a dec 95 on a fallback..could work.
since dell is up and down this step in spread would be easy to create
since the dec 95 call on a retreat would cost only 1/2.
Your margin requirement is drastically limited. and your risk is reduced to next to zero....5 points risk and you net 3 points.
sell the 90 call for 3.5 and purchase the 95 call for .5 ...that's 3 points....so the risk is 2 points only

Even if your naked play wins..I think it's inferior to the strategy I just outlined where you use the volitility of the stk to step into both ends of the spread at times when the premy is to your advantage.

Thread...if anyone comments on this...
please read the entire chain of posts before you bury me with your usual misinterpreations like the last time I brought up options.
heck..it's all I can talk about on dell thread anyway..can't really mention anything about dells operation anymore.
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