Jim and All:
I bought Dell July 100 Calls on Friday 7/10 at open at limit price of 3, just to speculate, knowing that the Call options expire on 7-17-98 -- just for Pizza Money, you know! . I also own August 95 calls, purchased few weeks ago.
Since the Annual Meeting is on Friday 7/17, and I expect some good news to come out of this meeting, I have two questions for those of you who are experienced in options, and who had been in DELL for few years:
(1) Do you expect DELL to close up next week, especially on Friday 7/17 due to good news coming out of the Annual Meeting? Or stock will sell off, because of "Buy on rumors, and sell on news"? Any advise or opinion on how I should play July 100 calls during this last week of expiration?
(2) The second question relates to August 95 call options. There are six weeks left here, therefore not to be concerned too much. However, the earnings report will be coming out during the last week of options expiration for August, during the week starting 8/17. If you had this call option, would you hold it a day or two after the earrings announcement (hopefully they will be good), or sell a day before the earnings announcement, or sell soon after the earnings are announced? Does DELL announce the earnings after the market close on a non-Friday working day, or after the market open on a non-Friday working day?
Any help will be greatly appreciated. |
