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Technology Stocks : Dell Technologies Inc.
DELL 122.55+4.4%Nov 21 9:30 AM EST

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To: paulschl who wrote (54853)7/28/1998 10:50:00 PM
From: Don Martini  Read Replies (1) of 176387
 
Paulschl, My best answer is probably.

In the next 8 trading days half of the time-value in Aug calls will disappear. If Dell takes a serious dip tomorrow, near 100, it will probably be time to buy some near-the-money calls. I did that last week and made 50% today.

I feel confident Dell will begin a strong gain within a few days because of earnings announcement, so expect a dollar-for-dollar win on August calls bought in the next few days. Can get most of the profit up to earnings for the price of an option. Problem is to pick the right entry point, but I'd rather pay too much than lose all the opportunity this special, but choppy, situation provides. A safer but costlier play is September options, and they can also pay off bigger.

Recently I've taken to closing out some profitable positions at 3:45
to avoid the bad-news-night-frights-sky-falls-in-the-morning effect.

My crystal ball is imperfect, but productive.

Happy Trading!

Don
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