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Technology Stocks : Dell Technologies Inc.

DELL 133.20

+5.7%

Nov 26 3:59 PM EST

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To: Maxer who wrote (44203)	5/22/1998 7:31:00 AM
From: Jerry Miller	Read Replies (1) of 176387

Hi Max, Meathead's got it right. when you buy puts, you're betting the stock will go down. when you sell puts, you're confident the stock won't reach your strike price...in this case 55, by the third Friday in November. being in or out of the money is all relative to the price of the stock at the time. if you own "in the money" puts: the stock price is already below your strike, and you'll show a profit. if you own "out of the money" puts: the stock price has yet to go below your strike and until then, no profit will exist. it's easy to see then that this move was brilliant on Dell's part, if indeed they sold these November 55s. like Meathead said, anything can happen, but more than likely the shorts will wind up financing our buy-back program. pretty slick, huh ?

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