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Technology Stocks : Dell Technologies Inc.
DELL 133.92-4.9%3:59 PM EST

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To: angel who wrote (29862)2/16/1998 6:24:00 PM
From: Sig  Read Replies (1) of 176387
 
Angel:
<<< I just rolled my 60 Feb 110 calls to the same amount of March 120s -- earning reports make me nervous even Dells.>>>
Neatly said, we are not dealing with a ten dollar stock here(ggggg)

<<<<My Q was how come you choose to buy 90s which are $20 in the money
as opposed to say 120s? How does this strategy compare with buying
a straddle with Jan 2000 120 Calls and Jan 2000 90 puts for example?>>>
Purely a personal choise. The really important thing is already
resolved which is to work with a quality stock that will go up.
If you are prepared to go for the gold, then the higher strike
price will(very likely) give a greater percent return.
I chose to play it a with a bit more comfort level,
in that if Dell( heaven forbid) sat at the same price for the next two months my 90's will start to look better than the 120's.
My past options trades did better at the lower strike prices,
perhaps yours did better at the higher ones, so stick with
what you are best at...
Can't comment on straddles. no experience. Considered buying protective Dell puts about 5 different times last year,even
asked broker about them when Dell was at 95. Four times out of the 5 they would have been losers. Did buy 22 one day, sold them
a few days later as I was decidedly uncomfortable as a Dell
bear.(ggggg)
Sig
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