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Technology Stocks : Dell Technologies Inc.
DELL 133.35+0.1%Nov 28 9:30 AM EST
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To: Rosemary who wrote (23748)12/1/1997 4:04:00 PM
From: jbn3  Read Replies (1) of 176387
 
Rosemary,

It goes like this, I think.

Hank sells 10 DELL 90 naked calls
DELL goes to 90.
Hank sells 20 DELL 95 naked calls
DELL goes to 95.
Hank sells 40 DELL 100 naked calls
DELL goes to 100.
Hank sells 80 DELL 105 naked calls
DELL announces split, goes to 120.
DellHeads throw a party and invite Hank.

Actually, one can buy the calls back (cover)at any time: when DELL hits 90, one can buy the option (which one sold for 2 3/4) back for 6.
One can also gamble that the stock will go back down, grit one's teeth, and hold on.

regards, 3.
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