Dell Technologies Inc. Message Board

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Technology Stocks : Dell Technologies Inc.

DELL 133.18

0.0%

12:59 PM EST

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To: AlanH who wrote (44492)	5/22/1998 5:39:00 PM
From: Meathead	Read Replies (2) of 176387

Here is the other side of the equation. They use the 6 million to buy 10,000 Nov 110 calls. Now they have the right to purchase 1M shares at 110 in November... a known price... virtually free insurance against a rising stock price. If the stock is trading at 130 or more(which could easily happen) the gain is now 20 Million plus. The risk reward ratio is quite favorable. MEATHEAD

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