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Strategies & Market Trends : Tech Stock Options

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To: James Young who wrote (43188)5/18/1998 2:09:00 PM
From: AlanH  Read Replies (1) of 58727
 
James Young:

All - I owned DELL and I'm getting nervous about its lofty valuation. I'm thinking of hedging my position by buying puts. Does anyone have any suggestions of what puts I should get.

I'd need to know your cost basis and disposition toward DELL. Also, timeframe is important.

For a pure options play (nothwithstanding DELL holdings), I'd recommend put backspreads. If you prefer to keep things simple, AT THIS MOMENT Aug 90P and Jul 80P are good values. My preference is toward the AUG series, because it offers additional money-making opportunities (eg, Jun, Jul). But, if you don't plan to trade (and write) intermediate series, then don't pay the added time premium for Aug.

Again, the above is without regard to your particular situation, timeframe. Good luck.
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