Dan:
<<<< I was planning on holding them through the split
(barring any unforeseen glitches) Am I better of with 10 105's or 30 130's? >>>
This may not help (as you have many options Hehehe(joke)and the question is whether Dell will continue up....
1. You don't really have a problem, the guy that sold the calls
might..
2. Commments in books written by portfolio managers say "take some money off the table", "never let a winner turn in to a loser",
"don't get greedy and try to time things exactly"
( A Dell stockholder can do well to ignore some of those.)
3. If you have studied any problem for a reasonable length of time and still can't decide, then it often does not matter which route you chose.
In my own limited (<year) dealing with options. having lost
some on WDC, and complete on Dell Nov's, I now try to keep from
losing by selling 1/2 when significantly ahead.EXCEPTING for DELL's
It worked well on cpq and klic and a few others, but it cost me on msft.
Last week with options expiration coming on Friday, I had to do
something with the Feb calls, so rolled them into Mar calls on Thursday and watched dell go up over 4 on Friday??. So that may hve cost me money but am not going to look back and count it!!
Again, on the msft split, my little rules say I must sell the
day a stock split becomes effective. Yesterday I sold and rolled those over into March only to see msft go up another 4 points or
whatever, and then (toolate) somebody comes on the thread and tells
me msft always goes up after a split......
So I am hurting because of the lost profits (if ida done things exactly right), right???
WRONG.... Am not hurting, am having a picnic, and managed to pick up some mrk and lu calls with the profits along the way.
More seriously, I would tend to convert some of the Mar options into apr or may 110's , 130's or some leaps.
I am planning to hold mine right thru the split and then decide. (I have both the 105's and some new 130's)
And I hope to hear others comment on your problem.
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