Phil & Patrick's Picks Message Board

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Strategies & Market Trends : Phil & Patrick's Picks

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To: Patrick Hebert who wrote (954)	12/18/1997 2:31:00 PM
From: PHIL K.	Read Replies (1) of 1020

Patrick, Just bt back 2K of DELL at 80 1/2...Couldn't pass it up.. I also sold Dec 80 calls against the shares..for 1 7/8.. Scenario: If stock closes tomorrow at 80 I keep the premium of $3,625 and the DELL stock also.. If DELL closes above 80 tomorrow I still keep the premium and stock is called away at $80 per share...80 1/2 minus 80 = -1/2 Premium from calls 1 7/8 - 1/2 = 1 3/8 on 20 calls sold = $2,750.. If DELL closes below $80 tomorrow..I keep the premium a dn I also keep the DELL stock...My purchase price of 80 1/2 was reduced to (80 1/2 - 1 7/8 premium = 78 5/8... I see it as a GREAT situation no matter what....(unless DELL tanks down to $60 per share) I would only play this move on DELL being that is so close to expiration.... WISH ME LUCK.. Phil K.

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