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Technology Stocks : Dell Technologies Inc.

DELL 133.35

+0.1%

Nov 28 9:30 AM EST

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To: Meathead who wrote (44495)	5/22/1998 6:14:00 PM
From: AlanH	Read Replies (1) of 176387

use the 6 million to buy 10,000 Nov 110 calls. A spread is always possible, but by no means is such a wide spread "virutally free insurance." In fact, DELL would sustain a 40+% correction before the insurance would be effective. That's a heck of a deductible. It's unlikely that the position is an insurance play. If we assume that DELL will rise, a much tighter synthetic long would offer higher profitability. So, I'm still unsure as to where offsetting position is. Unless a CPA explains how the Nov55P looks good on the books as a buy-back, I'm going to assume that Short Nov55P is not an opening position.

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